A new market study titled Global Builders Risk Insurance has been released by HTF MI, presenting an in-depth look at current conditions, emerging trends, and factors influencing the sector’s development. The report aims to better understand the business environment and the elements shaping the progress of the builders risk insurance market.
According to HTF MI, major companies active in the global market include Allianz (Germany), AXA (France), Zurich Insurance Group (Switzerland), Chubb Limited (USA), Travelers Companies (USA), The Hartford (USA), CNA Financial (USA), Tokio Marine Holdings (Japan), Liberty Mutual (USA), Berkshire Hathaway (USA), AIG (USA), Sompo International (Japan), Munich Re (Germany), Swiss Re (Switzerland), and QBE Insurance Group (Australia).
Market Drivers and Industry Shifts
The report identifies multiple forces contributing to the rising demand for builders risk insurance. Increasing global construction activity — including residential, commercial, and industrial development — continues to expand the need for project-focused coverage. Economic growth and government-backed infrastructure investments further support this activity, with post-pandemic recovery programs in the United States and Europe serving as recent examples.
Urbanization and growing populations are adding pressure for more housing, further elevating demand for residential construction insurance. At the same time, evolving construction methods and materials require updated risk assessments. Heightened awareness of construction-related risks, including natural disasters and supply chain disruptions, also encourages broader adoption of builders risk policies. The study notes that insurers are tailoring products to emerging exposures, such as cyber threats affecting construction data and equipment. Regulatory frameworks mandating safety and insurance compliance play an additional role in boosting market uptake.
HTF MI reports that the global builders risk insurance market has experienced substantial growth, with a CAGR of 7.5%.
Technology, Sustainability, and Market Expansion
The study highlights several developments influencing the direction of the market. Digitization and technology integration are expanding capabilities in risk monitoring, with IoT devices and drones enabling continuous site assessment. Artificial intelligence is also being used to enhance underwriting accuracy and streamline claims handling.
Modular and prefabricated construction is expanding, creating new risk profiles that require different insurance models. Sustainability initiatives are driving demand for coverage addressing green building practices and environmental compliance. The report also points to a rising need for cyber-related protections linked to automated machinery and digital construction systems.
Emerging markets — particularly in Asia-Pacific and Latin America — are seeing rapid construction growth, creating new opportunities for insurers. Policy flexibility and customization continue to increase, especially for project-specific risks such as delays or cost overruns.
Growth Opportunities and Expanding Risk Solutions
According to the report, tailored insurance products for new construction technologies, including 3D printing and smart buildings, represent a major opportunity for market expansion. Geographic growth in regions such as Southeast Asia and Africa is also expected to meet rising insurance needs amid accelerating urbanization.
Additional trends include collaborations between insurers and construction technology firms, the growing use of parametric insurance for weather-related losses, and increased public-private partnerships for infrastructure projects. The expansion of brokerage services and evolving regulatory requirements — including more countries considering mandatory builders risk insurance — continue to support market penetration. Climate-focused insurance solutions for extreme weather conditions on construction sites are also highlighted as a developing segment.
Distribution channels such as insurance brokers and direct sales are identified as significant contributors to market growth, alongside rising demand from small and medium-sized enterprises and broad macroeconomic expansion.
Market Landscape and Regional Positioning
The market remains highly competitive due to the presence of numerous major organizations. North America currently holds the largest market share, while the Asia-Pacific region is emerging as an increasingly important area for global builders risk insurance brands.
Industry Activity
HTF MI also reports that on February 15, 2025, Chubb Limited acquired a strategic stake in a construction technology company specializing in predictive risk analytics for the builders risk sector. The acquisition enhances Chubb’s underwriting capabilities with data-driven insights and supports technology-focused expansion in emerging markets.
For more information on builders risk insurance, see Top 5 Trending Insurance Markets of October 2025, Part 1: Builders Risk Insurance.