Q1 2022 update
As we look back on the end of 2021 and into 2022, we can certainly see reasons for optimism. The construction industry outlook, for the most part, is positive. We still anticipate certain sectors will remain behind pre-COVID-19 levels (e.g., office, but the industry will be buoyed by increased numbers in other sectors such as infrastructure, manufacturing, and warehousing and even areas heavily impacted by COVID-19, such as hospitality construction, are eager to get back to developing and building. In our own industry, we are also seeing more indications of an improved marketplace but still supporting our commentary in the second half of 2021 that we are experiencing a two-tiered market. The tiers are delineated by those that have taken extra efforts to set themselves apart as best in class and can show the results. The required efforts transcend clients; today's marketplace requires insurers and brokers to work even more closely with clients and to use all the available tools such as data and analytics to create a bespoke story that shows why a particular risk is worthy of greater consideration from the markets and to set themselves apart from others.
Even as we see some positive actions, many trends highlighted in 2021 continue today and some of the more prevalent areas are:
These trends from the last year continue but we are also seeing an acceleration of some new concerns that are impacting the market.
In summary, the current environment is experiencing stabilization in rates for most lines of coverages, but that stabilization is only achieved with significant preparation and attention to detail around measures in place to control and limit loss activity. Renewals, new business and project specific submissions all require more time to develop, and each needs a far higher level of detail to obtain preferred treatment. More importantly, each submission needs a specific strategy to use as a guide to navigate the evolving marketplace. Each region around the world has some nuances that are important to recognize, and we hope our region-to-region summary gives you specifics that may have more application to your situation. As always, please reach out to any of our fully connected experts globally for more insight on any specific issue.
Willis Towers Watson offers insurance-related services through its appropriately licensed and authorised companies in each country in which Willis Towers Watson operates. For further authorisation and regulatory details about our Willis Towers Watson legal entities, operating in your country, please refer to our Willis Towers Watson website. It is a regulatory requirement for us to consider our local licensing requirements.
Title | File Type | File Size |
---|---|---|
Global Construction Rate Trend Report - Q1 2022 | 3.7 MB |
Bill Creedon is the Global Head of Construction for WTW. During his time in the industry, Bill has held a variety of roles ranging from client management to local and global leadership. Over the years, Bill has gained experience with a broad spectrum of heavy civil and building contractors. Bill also works closely with the Graduate Development Program at WTW dedicated to fostering young talent within the company.