About Engineering Insurance
Engineering insurance is meant to safeguard against unpredictable losses that may occurred during the construction activities of buildings and infrastructure as well as during plant’s operation. Though, it represents only 3-4 % of total commercial insurance market but it has annual premiums of over USD 20 billion, and helps businesses in undertaking large construction projects which may be precarious otherwise. Currently, global engineering insurance market is witnessing surge owing to developments in commercial premium rates. United States witnessed rise in cost of insurance on construction related risk of late, and other countries including emerging ones are expected to witness the similar result during forecast duration, which in turn offer lucrative opportunity for engineering insurance providers to cash on.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 4.6% |
Local as well as international players have sizable presence in engineering insurance market. Insurance companies usually opt for co-insurance arrangements in projects which involve international parties. Even though, global engineering insurance market is highly fragmented, yet, domestically top three or four players are enjoying fair market share in domestic premiums. Analyst at AMA Research estimates that American Players will contribute the maximum growth to Global Engineering Insurance market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Allianz (Germany), AXA (France), Nippon Life Insurance (Japan), American Intl. Group (United States), Aviva plc (United Kingdom), Assicurazioni Generali (Italy), Cardinal Health (United States), State Farm Insurance (United States), Dai-ichi Mutual Life Insurance (Japan), Munich Re Group (Germany), Zurich Financial Services (Switzerland), Prudential Financial (United States), Asahi Mutual Life Insurance (Japan), Sumitomo Life Insurance (Japan), MetLife (United States), Allstate (United States), Aegon (India), New York Life Insurance (United States), Meiji Life Insurance (Japan), Aetna (United States), CNP Assurances (France) and PingAn (China) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are China Pacific Insurance Company (China), TIAA-CREF (United States), Mitsui Mutual Life Insurance (Japan), Royal & Sun Alliance (United Kingdom), Swiss Reinsurance (Switzerland), Yasuda Mutual Life Insurance (Japan) and Standard Life Assurance (United Kingdom).
Segmentation Overview
AMA Research has segmented the market of Global Engineering Insurance market by Type (Project Insurance (Erection All Risks Insurance, Contractors All Risks Insurance, Contractor’s Plant and Machinery Insurance), Operational Machineries Insurance (Machinery Breakdown Insurance, Boiler And Pressure Plant Insurance, Electronic Equipment Insurance, Civil Engineering Completed Risks Insurance and Deterioration Of Stocks Insurance) and Business Interruption Insurance), Application (Production and Processing Enterprises, Oil and Gas, Power and Utilities, Heavy Industries, Transportation Systems, Heavy Civil Engineering Projects and Others) and Region.
On the basis of geography, the market of Engineering Insurance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico).
Influencing Trend:
Growing Demand for Tailor-made Engineering Insurance, Increasing Share by Project Related Policies in Engineering Insurance Market and Utilization of Non-damaged Parametric Products to Cover New Risks in Engineering Insurance
Market Growth Drivers:
Increasing Need to Absorb Unforeseen Losses During Construction and Operation of Plants, Growing Construction and Operational Activities in Asia Pacific and Middle East Supported by China’s Belt & Road Initiative and Increasing Risk Exposures in Engineering Projects
Challenges:
Complex Nature of Engineering Insurance Practices Owing to Involvement of Multiple Parties and Maintaining Underwriting Discipline Amid Increasing Competition in Engineering Insurance Market
Restraints:
Economic Slowdown in Emerging Countries and Increasing Protectionism Leading to Trade War Thus, Curbing Investment Spending and Insurance Demand
Opportunities:
Emergence of New Technologies in Engineering Practices Resulting in Rise in Number of Risks, Need for Robust Collaboration Between Insured and Insurers to Streamline Engineering Insurance Services and Growing Investment in Renewable Energy Sources Amid Increasing Need to Meet Climate Change Target
Market Leaders and their expansionary development strategies
In June 2023, XDimensional Technologies, an insurance technology provider backed by Serent Capital, announced its acquisition of Shelton, Conn.-based insurance software firm I-Engineering. The combined talent, experience, and products of the organizations will enable both organizations to deliver more value to existing and new customers while increasing the strength of their implementation, support, product, and technology teams, according to a statement from XDTI. Terms of the acquisition were not disclosed.
In March 2022, HSB (UK and Ireland), the specialist engineering and technology insurer, launched two specialist engineering and technology products on their UK e-trade platforms, further extending their suite of e-trade products available to brokers.
Analyst View
"Europe, Middle East and Africa account for highest market share in global engineering premiums, largely because of growing awareness regrading operational cover such equipment breakdown and insurance of construction projects. China contributes to nearly one-third engineering premium in Asia Pacific, while Brazil, Colombia and Mexico together account for 2/3rd of engineering premium in Latin America."
Key Target Audience
Insurance Providers, Insurance Brokers, End-users Industries, Potential Investors in Insurance, Market Research And Consultancy Firms, Government Organizations and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.