Construction Project Insurance Market Report 2025

The construction project insurance market size has grown strongly in recent years. It will grow from $7.91 billion in 2024 to $8.38 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth during the historic period can be attributed to rising construction activities, global urbanization, investments in infrastructure projects, increasing demand for housing, and growing requirements for mandated insurance coverage.

The construction project insurance market size is expected to see strong growth in the next few years. It will grow to $10.42 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth expected in the forecast period is driven by a heightened focus on sustainable and green construction, increased awareness of risk management, growing environmental concerns, expansion of transport networks, and government initiatives. Key trends in the forecast period include advancements in digital platforms, adoption of AI-driven risk assessment tools, integration of blockchain-based solutions, technological advancements, and the incorporation of Internet of Things (IoT) sensors.

The rise in construction activities is expected to drive the growth of the construction project insurance market in the coming years. Construction activities involve the building, repair, or modification of structures such as buildings, roads, bridges, and other infrastructure. This increase is largely attributed to urbanization, as the growing concentration of populations in urban areas creates greater demand for residential, commercial, and infrastructure development. Construction project insurance offers financial protection against unforeseen risks associated with construction, helping to ensure project continuity and minimize delays. It protects stakeholders from liabilities, property damage, and worker injuries, thereby enhancing risk management and boosting confidence in project execution. For example, in April 2025, according to the United States Census Bureau, a US-based government agency, construction spending in the US reached $2.19 trillion in 2024, up from $2.07 trillion in 2023. As such, the surge in construction activities is contributing to the growth of the construction project insurance market.

Key companies in the construction project insurance market are focusing on the development of advanced technologies, such as IoT-enabled dashboards, to improve risk monitoring and enhance underwriting efficiency. An IoT-enabled dashboard is a digital tool that collects, displays, and tracks real-time data from connected devices, allowing users to manage risks, monitor performance, and oversee operations remotely. For instance, in June 2025, Brickeye, a Canada-based software company, introduced BuildersRiskIQ, a dashboard that integrates IoT sensor data to monitor major construction risks, including water damage, environmental factors, and site security. The platform offers actionable insights, automated notifications, and verified loss control data, enabling contractors and insurers to reduce claims, optimize coverage, and lower builders’ risk insurance premiums. It supports improved underwriting accuracy by facilitating transparent risk assessments and allows for data-driven decision-making through advanced analytics.

In March 2025, Chubb Limited, a Switzerland-based insurance provider, acquired property and casualty insurance businesses from Liberty Mutual Insurance Group in Thailand and Vietnam for an undisclosed sum. This acquisition is intended to bolster Chubb’s presence in Southeast Asia and expand its insurance offerings across emerging markets in the region. Liberty Mutual Insurance Group, based in the US, provides a wide range of insurance solutions, including construction project insurance.

Major players in the construction project insurance market are Allianz SE, Munich Reinsurance Company, American International Group, Tokio Marine Holdings, Liberty Mutual Insurance Group, Swiss Reinsurance Company Ltd, Zurich Insurance Group, Chubb Limited, The Hartford Insurance Group, Sompo International, QBE Insurance Group, Everest Re Group, CNA Financial Corporation, Markel Corporation, AXA XL, FM Global, Arch Insurance Group, Aspen Insurance Holdings, Berkshire Hathaway Specialty Insurance, Beazley Group.

North America was the largest region in the construction project insurance market in 2024. The regions covered in construction project insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the construction project insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Construction project insurance is a type of coverage designed to protect stakeholders involved in construction projects from financial losses caused by risks such as property damage, worker injuries, or third-party liabilities. It provides financial protection and risk mitigation throughout the construction lifecycle, supporting project continuity and ensuring compliance with legal and contractual obligations.

The main categories of construction project insurance include personal injury insurance, property damage and loss insurance, construction quality insurance, and others. Personal injury insurance specifically covers medical expenses, compensation, or legal fees if a worker, visitor, or third party is injured on a construction site. These insurance policies are distributed through multiple channels such as direct sales, brokers or agents, and online platforms, and are applied in residential, commercial, industrial, and infrastructure projects, serving end users such as contractors, property owners, and others.

The construction project insurance market research report is one of a series of new reports that provides construction project insurance market statistics, including the construction project insurance industry global market size, regional shares, competitors with the construction project insurance market share, detailed construction project insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the construction project insurance industry. This construction project insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The construction project insurance market includes revenues earned by entities through risk coverage, project-specific liability coverage, and professional indemnity insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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