Construction insurance marketplace update
There is a consensus that the hard market cycle, which has been
experienced for many years, seems to finally be closing in the
construction insurance market and in the insurance industry as a
whole. However, we are still confronting some rate pressures
associated with concerns in relation to inflation and interest rate
uncertainty, resulting from another record year of catastrophic
events in 2023.
According to the latest Natural Catastrophe Review released by WTW,
for the fourth consecutive year, 2023 saw global insured losses
exceed $100 billion, with a total economic loss surpassing $350
billion.1 Such loss levels are becoming the norm, not
the exception. As a result, underwriting scrutiny, increases in
pricing and limited capacity in Nat Cat exposed areas, with special
attention on secondary perils such as convective storms, wildfires,
droughts, and floods, will continue. However, these are not as
adverse as seen in
