The Latest Construction Insurance Industry Statistics Explained
In 2020, the global construction insurance market size was valued at USD 6.9 billion.
In 2020, the global construction insurance market size of USD 6.9 billion represents the total value of premiums generated by insurance providers specifically for insuring construction projects worldwide during that year. This statistic signifies the substantial financial scale of the construction insurance industry, highlighting the significant risks and liabilities associated with construction activities. The market size figure suggests that construction companies, contractors, and project owners are actively seeking insurance coverage to protect against various risks such as property damage, liability claims, worker injuries, and project delays. Overall, the growing demand for construction insurance reflects the industry’s recognition of the importance of risk management and financial protection in the dynamic and complex environment of construction projects.
The construction insurance market is projected to reach USD 10.17 billion by 2028, growing at a CAGR of 4.8%.
This statistic indicates that the construction insurance market is estimated to expand and reach a value of USD 10.17 billion by the year 2028, with a Compound Annual Growth Rate (CAGR) of 4.8%. This projection suggests a steady and moderate growth trajectory in the construction insurance sector over the forecast period. The CAGR of 4.8% highlights the annualized rate at which the market is expected to increase, demonstrating sustained demand for insurance products within the construction industry. Factors such as increased construction activities, regulatory requirements, risk management practices, and the overall growth of the construction sector are likely to contribute to this positive market outlook.
In 2019, the largest construction insurance market share (65% approximately) was held by private insurers.
The statistic stating that in 2019, private insurers held the largest construction insurance market share at approximately 65% means that out of all the insurance providers offering construction insurance that year, private insurers held the majority of the market. This suggests that private insurance companies were the preferred choice for construction firms seeking insurance coverage, potentially due to factors such as competitive pricing, specific coverage options tailored to the construction industry, or a strong reputation for reliable service. The dominance of private insurers in the construction insurance market indicates a high level of trust and confidence from customers within the industry towards these providers.
the Asia Pacific region was the second-largest regional capital of the construction insurance market in 2019.
The statistic that the Asia Pacific region was the second-largest regional capital of the construction insurance market in 2019 illustrates the significant role that this region played in the global construction insurance industry during that year. It indicates that after analyzing the contributions from various regions around the world, Asia Pacific emerged as the second most important hub in terms of capital invested in construction insurance. This suggests that there was a substantial amount of construction activity in the region, leading to a considerable need for insurance coverage to mitigate risks associated with these projects. Overall, this statistic highlights the importance of the Asia Pacific market in the construction insurance sector and its position in shaping the global landscape of insurance offerings for construction projects.
Europe accounted for around 7% of the worldwide construction insurance market in 2019.
The statistic indicates that Europe represented approximately 7% of the total global construction insurance market in the year 2019. This suggests that the construction insurance industry in Europe had a minor share of the worldwide market compared to other regions. The information highlights the relative importance of the European construction insurance sector within the global context, with the majority of the market share likely held by other regions such as North America or Asia. Understanding the market distribution can provide insights into the competitiveness and dynamics of the construction insurance industry on a global scale, as well as potential areas for growth and development within the European market.
More than 30% of insurance claims in the construction industry are due to water damage.
This statistic indicates that a substantial portion, more than 30%, of insurance claims made within the construction industry are attributed to water damage incidents. Water damage can result from a variety of sources such as leaks, flooding, or other issues related to water infiltration within structures. This statistic underscores the significance of water damage as a common and costly issue faced by construction companies, highlighting the importance of preventive measures and proper risk management strategies to mitigate the financial impact associated with such claims.
In 2017, property damage accounted for 21% of construction insurance claims.
The statistic, “In 2017, property damage accounted for 21% of construction insurance claims,” indicates that a significant portion of insurance claims within the construction industry that year were related to property damage. This implies that damages to physical structures, equipment, or materials were a common occurrence and a notable factor in the overall insurance claims filed by construction companies. Understanding this statistic is crucial for insurance companies, construction firms, and policymakers to identify risk factors, improve safety measures, and allocate resources effectively to mitigate the impact of property damage in the construction industry.
25% of construction insurance claims are related to fire damage.
The statistic that 25% of construction insurance claims are related to fire damage indicates the proportion of claims within the construction industry that are specifically attributed to fires. This implies that a significant portion of insurance claims in construction are the result of fire-related incidents, highlighting the potential risks and costs associated with fire damage in this sector. Understanding this statistic can help insurance providers assess risk levels, tailor coverage offerings, and implement preventive measures to mitigate fire hazards and protect construction projects from potential financial losses due to fire damage.
In the UK, insurance premiums for construction sites can range from £100 to £780 a month.
The statistic indicates that insurance premiums for construction sites in the UK can vary widely, with monthly costs ranging from £100 to £780. This range suggests that the pricing of insurance for construction sites is influenced by various factors such as the size and scope of the project, the location of the site, the type of construction activities being carried out, as well as the risk profile associated with the specific project. Construction projects with higher levels of risk or larger scale developments may require higher insurance premiums to mitigate potential financial losses due to accidents, damage, or liability issues. Conversely, smaller and less risky projects may warrant lower insurance premiums. Overall, this statistic highlights the importance of evaluating insurance options carefully to ensure adequate coverage at a reasonable cost for construction projects in the UK.
Contractors and builders are the main drivers of the construction insurance market, contributing to over 50% of revenue.
The statistic that contractors and builders are the primary drivers of the construction insurance market, contributing to over 50% of revenue, indicates that the insurance industry heavily relies on these key stakeholders for its economic viability. This is because contractors and builders are involved in high-risk activities that require insurance coverage to mitigate potential financial losses due to accidents, damages, or other unforeseen circumstances. Their significant contributions to the construction insurance market suggest that they represent a substantial portion of the insured population and play a crucial role in shaping the overall market dynamics and trends. This statistic underscores the importance of understanding the insurance needs and behaviors of contractors and builders in order to effectively cater to their risk management requirements and sustain the growth of the construction insurance sector.
Extreme weather events account for over 15% of construction insurance claims.
The statistic “Extreme weather events account for over 15% of construction insurance claims” indicates that a significant portion of insurance claims within the construction industry are attributed to damages caused by extreme weather conditions. This statistic suggests that construction projects are vulnerable to various weather-related risks, such as hurricanes, floods, wildfires, and storms, leading to substantial financial losses that require insurance coverage. The high percentage of claims related to extreme weather events highlights the importance of risk management strategies in the construction sector to mitigate the impact of unpredictable weather patterns on project timelines, costs, and overall success.
The direct written premium of construction insurance in the USA was close to USD 24 billion in 2018.
The statistic ‘The direct written premium of construction insurance in the USA was close to USD 24 billion in 2018’ refers to the total amount of money collected by insurance companies from policyholders for construction insurance coverage in the United States during the year 2018. Direct written premium is a key metric commonly used in the insurance industry to measure the total premiums collected by an insurance company before accounting for reinsurance and other adjustments. In this context, the significant figure of USD 24 billion indicates the substantial size and financial importance of the construction insurance market within the United States economy, reflecting the high value and level of risk associated with construction projects in the country during that particular year.
As of 2018, there were 229 businesses in the construction insurance industry in the USA.
The statistic “As of 2018, there were 229 businesses in the construction insurance industry in the USA” indicates the total count of companies operating within the construction insurance sector in the United States at that point in time. This figure reflects the number of entities providing insurance products and services specifically tailored for the construction industry. Understanding the number of businesses in this industry is important for assessing market competition, industry growth, and the availability of insurance options for construction-related risks. Analyzing this statistic alongside other relevant data can provide insights into the size and dynamics of the construction insurance market in the USA.
In 2019, the total construction spending was about USD 1.3 trillion in the USA, with construction insurance being a major requirement.
The statistic that in 2019, total construction spending in the USA amounted to approximately USD 1.3 trillion highlights the significant financial scale of the construction industry within the country. This expenditure encompasses residential, commercial, and infrastructure projects, illustrating the robustness and dynamism of the construction sector. Additionally, the mention of construction insurance as a major requirement emphasizes the importance of risk management and protection within the industry, reflecting the potential financial stakes involved in construction projects and the need for safeguarding against unforeseen circumstances. Overall, this statistic underscores the substantial economic impact of the construction sector in the USA and the importance of risk mitigation measures such as insurance in ensuring the sustainability and success of construction endeavors.
The Latin American construction insurance market is predicted to grow at a CAGR of 5.1% from 2021 to 2028.
This statistic indicates that the Latin American construction insurance market is expected to experience a steady annual growth rate of 5.1% from 2021 to 2028. The Compound Annual Growth Rate (CAGR) is a useful metric for evaluating the average annual growth rate of a market over a specified period, providing insight into the market’s future performance. In the context of construction insurance in Latin America, this forecast suggests a positive outlook for the industry, with increasing opportunities and a growing demand for insurance products within the construction sector. This growth rate serves as a valuable indicator for stakeholders, insurers, and investors looking to understand and capitalize on the potential expansion and development of the Latin American construction insurance market in the coming years.
Conclusion
It is evident from the construction insurance industry statistics that the sector plays a crucial role in managing risks associated with construction projects. The data highlights the importance of various types of insurance coverage in protecting stakeholders and minimizing financial losses. As construction activities continue to grow, understanding these statistics is essential for all parties involved in the industry to make informed decisions and ensure successful project outcomes.
References
0. – https://www.www.transparencymarketresearch.com
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2. – https://www.www.ibisworld.com
3. – https://www.informedcontractors.com
4. – https://www.www.selective.com
5. – https://www.www.grandviewresearch.com
6. – https://www.www.zurichna.com
