Global Construction Insurance Market Size, Share Analysis Report By Type (Professional Liability, Property & Casualty), By Application (Agency, Bancassurance, Digital & Direct Channels), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Global Construction Insurance Market size is expected to be worth around USD 92.0 billion by 2034, from USD 39.2 billion in 2024, growing at a CAGR of 8.9% during the forecast period from 2025 to 2034. In 2024, North America held a dominant market position, capturing more than a 37.3% share, holding USD 14.6 billion in revenue.

The construction insurance market encompasses policies designed to manage risk during the development, completion, and operation of construction projects. This market addresses exposures related to property damage, liability, delays, contract performance, and environmental impact. Its essential function is to provide financial protection to contractors, owners, and financiers, thereby enabling the continuity of large and complex infrastructure, commercial, and residential projects under shifting economic and operational conditions.

Market Scope and Forecast

Top driving factors include the sustained growth of construction activities globally and rising awareness about structured risk management. Expanding investments in urban development, transport networks, and sustainable infrastructure have increased the demand for comprehensive insurance solutions. Stakeholders increasingly prioritize policies that minimize financial losses from unforeseen events and improve project resilience.

As per the latest insights from Market.us, The global AI in insurance market is projected to reach approximately USD 91 billion by 2033, up from USD 5 billion in 2023, reflecting a CAGR of 32.7% between 2024 and 2033. Similarly, the global parametric insurance market is anticipated to grow to about USD 40.6 billion by 2033, from USD 15.8 billion in 2023, at a CAGR of 9.9% over the same period.

For instance, In June 2025, Marsh launched a specialized insurance facility to cover risks in data center construction and operations. This offering addresses rising costs and complex challenges by providing protection against property damage, business interruption, and cybersecurity threats, supporting the critical role of data centers in the digital economy.

Key Insight Summary

• The global construction insurance market is expected to reach USD 92.0 billion by 2034, up from USD 39.2 billion in 2024, expanding at a CAGR of 8.9% over the forecast period.
• In 2024, North America dominated with a 37.3% market share, generating approximately USD 14.6 billion in revenue, supported by robust construction activity and regulatory requirements.
• The United States alone contributed USD 13.9 billion, growing at a CAGR of 5.8%, driven by demand for risk mitigation in large infrastructure projects.
• By type, property and casualty insurance led with 68% share, reflecting the need for protection against site damage, liability, and operational risks.
• By application, the agency channel accounted for 46% share, highlighting its role in distributing tailored insurance solutions to contractors and developers.

Analysts’ Viewpoint

Increasing adoption technologies such as digital underwriting tools, artificial intelligence-based risk modeling, and remote monitoring have been integrated to improve operational efficiency. These technologies enable precise risk assessment, faster policy processing, and streamlined claims management, helping both insurers and policyholders achieve better outcomes at lower administrative costs.

Key reasons for adopting these technologies include the need to manage complex risks effectively, enhance decision-making, and improve predictive accuracy. Contractors benefit by gaining real-time insights into potential site risks, while insurers can underwrite more efficiently and develop customized products aligned with specific project requirements.

Investment opportunities are emerging in the digital transformation of underwriting platforms and the expansion of services into high-growth regions. Developing innovative insurance-backed surety solutions and sustainable project coverage is also opening new avenues for insurers to capture untapped markets and diversify their portfolios.

U.S. Market Size

The market for Construction Insurance within the U.S. is growing tremendously and is currently valued at USD 13.9 billion, the market has a projected CAGR of 5.8%. Rapid expansion of this market is due to an increase in infrastructure projects, large-scale manufacturing initiatives, and a greater demand for data centers and life science establishments.

Strong contractor confidence and project backlogs further fuel this growth. Demand is also being driven by stricter regulations, better risk management strategies, and the need for strong infrastructure to deal with natural disasters and supply chain challenges. By offering tailored, competitive products, insurers are making the market more dynamic and enabling future growth.

For instance, in June 2025, Chubb, a leading global insurer, announced the launch of its new Builders’ Risk product in the U.S. market. This product provides comprehensive coverage for construction projects, including those for residential, commercial, and industrial properties. The policy aims to address the unique risks associated with large-scale construction, such as property damage, theft, and third-party liability.

In 2024, North America held a dominant market position in the Global Construction Insurance Market, capturing more than a 37.3% share, holding USD 14.6 billion in revenue. This dominance is due to robust infrastructure development, a strong construction industry, and strict regulatory frameworks.

The region’s high demand for commercial and residential construction projects, coupled with growing urbanization, fuels the need for comprehensive insurance solutions. Additionally, the increasing frequency of natural disasters in areas like the U.S. leads to higher demand for disaster-related coverage. Technological advancements in risk management and a highly competitive insurance landscape further reinforce North America’s leading market position.

For instance, in March 2025, AXA XL introduced the Sustainable Building Practices Adoption Maturity Index (SAMI), a new tool designed to evaluate the sustainability efforts of construction projects in North America. The SAMI index benchmarks how construction firms’ sustainable practices measure up against industry standards and peers, helping to identify areas for improvement.

Type Analysis

In 2024, The Property & Casualty Insurance segment held a dominant market position, capturing a 68% share of the Global Construction Insurance Market. This dominance is primarily driven by the essential need for coverage against property damage, theft, and liability risks associated with construction projects.

Property & Casualty Insurance provides comprehensive protection for construction firms, including builder’s risk insurance and general liability coverage, which are critical in mitigating financial losses. The segment’s widespread adoption across residential, commercial, and industrial construction projects further solidifies its leading market position.

For Instance, in October 2024, FCCI Insurance Group collaborated with Cognizant to develop new excess surplus insurance lines of business. This partnership aims to enhance FCCI’s Property & Casualty Insurance offerings by integrating advanced technology and data analytics to better assess risks and improve policy customization. The collaboration focuses on improving underwriting efficiency and expanding coverage options for businesses, particularly in the commercial sector.

Application Analysis

In 2024, the Agency segment held a dominant market position, capturing a 46% share of the Global Construction Insurance Market. The demand in this sector is driven by the specialized knowledge and customized service that agencies offer to construction firms dealing with intricate insurance needs.

Agencies provide tailored risk assessments, policy customization, and continuous support, which are crucial for contractors and project owners managing diverse risks. Furthermore, their established relationships with various insurers allow them to negotiate favorable terms and secure the best coverage options. This client-focused approach has made agencies the go-to choice for many in the construction industry, reinforcing their dominant position in the market.

For instance, in October 2024, a newly launched agency has set its sights on Australia’s growing construction insurance market. The agency aims to offer tailored insurance solutions to construction firms, addressing the sector’s unique risks, including project delays, liability, and property damage. By leveraging deep industry knowledge and providing personalized services, the agency seeks to fill gaps in the market and cater to the increasing demand for comprehensive construction coverage.

Key Market Segments

By Type

• Professional Liability
• Property & Casualty

By Application

• Agency
• Bancassurance
• Digital & Direct Channels

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of MEA

Drivers

Technological Advancements in Risk Management

The construction insurance industry is experiencing a significant shift due to the convergence of BIM and advanced risk assessment tools. With these digital advancements, insurers can now evaluate the risks linked to every project with greater precision, resulting in more personalized coverage options.

By utilizing data analytics and predictive modeling, insurers can create tailored policies that take into account the risks associated with specific construction projects, leading to improved risk management tactics. For instance, in June 2025, BrickEye launched a new digital dashboard aimed at streamlining risk mitigation and insurance planning within the construction industry.

This innovative tool enables real-time monitoring of construction site safety and operational risks, providing project managers with actionable insights. By collecting and analyzing data, the platform helps to identify potential hazards, improve safety protocols, and enhance insurance planning.

Restraint

High Premium Costs

One of the primary constraints in the construction insurance market is the high cost of premiums, especially for large-scale projects or those located in high-risk areas, such as earthquake-prone or flood zones. Many small to medium-sized construction companies find these costs too expensive, making it difficult for them to obtain the necessary coverage.

Higher insurance premiums, in a climate of intense competition and cost control essential for businesses, can hinder the growth potential of these smaller entities and impact their gross profit margins. For instance, in February 2025, the Insurance Bureau of Canada (IBC) reported that inflation is driving a significant increase in property insurance premiums.

Rising construction costs, labor shortages, and supply chain disruptions are contributing to the higher costs of rebuilding and repairing properties, leading insurers to adjust premiums accordingly. The report highlights that these inflation-driven increases are particularly affecting property insurance, with many policyholders facing higher rates.

Opportunities

Product Innovation

The growing emphasis on green building and sustainable construction practices presents a significant opportunity for product innovation in the construction insurance market. Insurers are now developing tailored products to address specific risks associated with environmentally conscious construction, such as energy efficiency, green materials, and adherence to environmental regulations.

For instance, in May 2025, Tokio Marine Group announced the launch of its new GX business aimed at supporting the green transformation across industries. The new business unit, Tokio Marine GX (TMGX), will focus on providing specialized insurance and risk management solutions for companies transitioning to sustainable practices and reducing their carbon footprints.

Challenges

Evolving Legal and Liability Risks

As construction projects become increasingly complex, the risks associated with legal disputes and liabilities are also escalating. The emergence of new challenges, such as contract disputes, liability claims, and liabilities to third parties, is causing an increase in the number of problems that insurers are dealing with.

Due to the diverse range of construction laws in place and regional variations, it is challenging for insurers to create policies that adequately address new legal and liability risks. Insurers need to keep up with these advancements to provide comprehensive coverage that meets contemporary legal and construction standards.

For instance, in March 2025, the Maharashtra High Court raised concerns over illegal construction activities, questioning if the government’s actions were encouraging lawbreakers. This highlights the growing legal and liability risks in the construction industry, including unauthorized projects and regulatory non-compliance. As legal challenges increase, insurers are adapting their policies to address these emerging risks, especially in regions with strict construction regulations.

Latest Trends

Parametric insurance is gaining traction in the construction industry due to its ability to offer quicker payouts based on predefined conditions, such as natural disasters or extreme weather events. Unlike traditional insurance, which often involves complex claims processes and delays, parametric insurance provides a streamlined approach with faster compensation.

This is especially beneficial for construction projects, where timely payouts are essential to prevent delays and ensure that work continues on schedule. The simplicity and speed of parametric insurance are making it an increasingly popular choice for construction firms.

For instance, in February 2025, Digit Insurance announced a partnership with KMD to offer AQI-based (Air Quality Index) parametric insurance for construction workers. This innovative insurance product aims to protect workers from health risks associated with poor air quality, a growing concern in construction environments. The parametric insurance policy triggers payouts based on real-time AQI levels, providing immediate compensation to workers if air quality deteriorates beyond a predefined threshold.

Key Players Analysis

AIG, Tokio Marine, and ACE & Chubb lead the construction insurance market by offering tailored policies for large and complex projects. Their ability to underwrite high-value risks and address challenges like delays and environmental liabilities has made them trusted partners for global contractors. XL Group, QBE, and Zurich Insurance also hold strong positions with innovative coverage solutions and competitive pricing strategies.

AXA, Beazley, and Munich Re focus on advanced risk analytics and reinsurance, supporting construction firms in managing financial and operational uncertainties. Allianz, Mapfre, and Manulife expand their reach by delivering flexible products that meet diverse regulatory needs across regions. These players emphasize resilience and adaptability in a dynamic construction environment.

Nationwide, State Farm, and Berkshire Hathaway serve smaller contractors with cost-effective policies, while Liberty Mutual and other key players invest in digital tools for claims and risk monitoring. Together, these insurers drive competition, innovation, and stability, ensuring the construction sector remains protected from emerging and traditional risks.

Top Key Players in the Market

• AIG
• Tokio Marine
• ACE&Chubb
• XL Group
• QBE
• Zurich Insurance
• AXA
• Beazley
• Munich Re
• Allianz
• Mapfre
• Manulife
• Nationwide
• State Farm
• Berkshire Hathaway
• Liberty Mutual
• Other Key Players

Recent Developments

• In March 2025, AXA XL (a division of AXA) launched the Sustainable Building Practices Adoption Maturity Index (SAMI). This new benchmarking service is designed to help construction clients in North America assess and improve their sustainable building practices. The initiative reflects the growing demand for sustainable construction and the insurance sector’s response with innovative risk assessment and coverage solutions tailored to green building projects.
• In May 2025, Tokio Marine Group announced the launch of its new GX business aimed at supporting the green transformation across industries. The new business unit, Tokio Marine GX (TMGX), will focus on providing specialized insurance and risk management solutions for companies transitioning to sustainable practices and reducing their carbon footprints.

Report Scope