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Welcome to WTW's Global Marketplace Insights series, where our experts bring you the latest risk and insurance perspectives.
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Hi, I'm Mike Venables, the GB Broking leader for Construction.
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I'd like to share with you our global marketplace insights for construction and highlight the main trends that we are seeing within our regions.
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2024, being labelled the Year of the Elections, is the largest election year in history, where approximately half the world's population expected to vote in an unprecedent number of national elections taking place across the world.
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Whilst this generates uncertainty around current governments’ policies in the short and medium term, it will also mean delays in investment decisions until the political landscape becomes clearer, causing significant impacts to those construction industries.
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Any change in government is likely to lead to a shift in policy and whilst this could delay approving new projects and threaten those already approved. In the UK we've had our elections, and the construction industry has reacted positively to the recent results with a hope that the political majority secured will usher a period of stability that will take a long-term approach to it's strategy to meet current householding needs and infrastructure investments.
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A widely held view that a flourishing infrastructure sector is key to future economic growth.
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Now returning to our insurance marketplace, the transition towards more favourable conditions continues as many insurer half year reports noted strong results in 2024.
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This is characterised by increased competition, improving flow follow capacity offering and a more positive outlook for clients, in turn generating a wider competition for placements.
2:06 WTW have been successful in securing additional capacity from the marketplace.
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This is generated from new insurer entrants in the market, former insurers returning to the construction space and established insurers increasing their capacity offerings.
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Pricing across most of our regions and products lines are expected to remain stable throughout 2024.
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WTW are again successful in negotiating rate discounts for best-in-class risks where deployment of risk management and risk control strategies are onboarding by the client.
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Quality underwriting information and positive loss history remains paramount to obtain savings and WTW as a broker plays a valuable role in the presentation of risk to insurers and the negotiation of best terms.
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There is a healthy competition from leading insurers wanting to lead risk once more, especially for the more complex risk.
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This is supported by insurer investment hires of specialist engineers to perform engineering and spot reviews.
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Natural Catastrophe (Nat Cat) remains a major concern to insurers, especially in heavily exposed territories.
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A stricter underwriting philosophy has been deployed with a higher demand for detailed project information, including risk mitigation strategies and risk profiling and modelling.
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The London market remains a force for complex and distressed risks, with many international project placements seeking additional capacity on an insurance or reinsurance basis.
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We trust that you find the global marketplace insight informative and we look forward to seeing you on the next series.
