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Asia Construction Market Update 2022

Get the latest Global and Asia construction industry insurance market and risk trends — with expert insights — in this Market Update by Marsh.
Construction engineers discussion with architects at construction site or building site of highrise building with Surveying for making contour plans is a graphical representation of the lay in land.

20/02/2023

Construction companies face a variety of acute challenges both at a global and regional level, according to the latest Market Update webinar by Marsh’s Specialty Construction practice. The update also highlights opportunities based on recent construction industry insurance market and risk trends in Asia and beyond.

A weakening macroeconomic outlook and geopolitical instability look set to continue to cause turbulence globally, with inflation, supply chain issues, and natural catastrophes among the main issues being faced in multiple regions.

Insurance prices have stablilised in Asia

In Asia, insurance prices and terms remained at a higher level at the end of 2022. Conditions have stabilised for most sectors within construction, except for petrochemicals, where several high-profile construction and operational losses have led to a tightening of pricing and coverage.

Amid this economic outlook, Marsh’s regional leaders reflected several universally consistent themes across the regions: 

Capacity

Underwriters, already maintaining strict underwriting controls and discipline, are now being more careful when assessing projects and deploying capacity. 

More updates and insights on capacity available in the full report.

ESG

Emphasis is being placed on underwriting guidelines to ensure they are strictly followed and subsequently, underwriters are reluctant to review risks that may have any ESG-related challenges. 

More updates and insights on ESG available in the full report.

Supply chain disruption

Rising procurement lead times and costs are impacting sum insureds under their policies as well as requiring companies to give further consideration to policy periods.

 More updates and insights on supply chain disruption available in the full report.

Gain essential insights for your construction business

To access in-depth Asia and Global construction market insights, download your copy of the full report today. 

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