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Surety

Marsh’s construction practice experts give their insight into surety and capacity changes on a global and regional basis during Q1 2024.
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The surety market had a challenging year, with rates generally flat. 

The UK experienced several high-profile contractor insolvencies, and there were losses among small and medium contractors in Asia and Europe. This has led to tighter underwriting criteria and reduced capacity in some instances.  

Underwriting criteria remained conservative in the Pacific, with some sureties reverting to terms and conditions, which put it at a disadvantage to bank guarantees. 

Surety is a new product in India, with strong demand. However, reinsurers have yet to initiate broad support. In the Middle East, surety has little penetration, but the increase in infrastructure and construction projects in the Middle East is leading banks to look at sureties to distribute their guarantee exposures. 

Surety is widely used in Africa, but the lack of global sureties creates a capacity challenge. Additionally, the unfavourable rating of local/regional insurers limits their participation in large international projects happening in the continent. 

Global construction market update

Global macro trends point to an encouraging outlook for the construction sector.

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Our people

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Maarten van Haaps

Head of Construction, Pacific

  • Australia

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Brad Day

National Business Relationship Manager - Corporate Construction, Australia

  • Australia

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LCPA 24/161

“Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”