Demand for construction insurance in India is growing steadily as the country’s infrastructure sector is expanding. However, insurers are adopting a more cautious approach by increasing scrutiny of natural disasters, project governance and delay-related risks.
The construction insurance market remains competitive and growth-oriented. Despite favourable market conditions and improved reinsurance capacity enabling developers to access cost-effective coverage, insurers are placing greater emphasis on early risk assessment as project sizes and asset values continue to increase.
The large-scale infrastructure projects in India are increasingly exposed to natural hazards such as floods and earthquakes. As a result, developers are being encouraged to strengthen project governance, establish realistic construction timelines and engage with insurers early in the project lifecycle to better manage risks and optimise insurance costs.
Sustained capital investment in green energy, technology led projects and nationally critical infrastructure is expected to drive construction insurance market with focus on tackling complex risks and developing specialised underwriting skills.
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