Scope of the Study
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.
The market study is being classified 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), by Application (Production and Processing Enterprises, Oil and Gas, Power and Utilities, Heavy Industries, Transportation Systems, Heavy Civil Engineering Projects and Others) and major geographies with country level break-up.
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 profiled in the study. Additionally, the Players which are also part of the research 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).
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. Research Analyst at AMA predicts that American Players will contribute to the maximum growth of Global Engineering Insurance market throughout the predicted period.
AdvanceMarketAnalytics has segmented the market of Global Engineering Insurance market by Type, Application 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). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
- 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
- Increasing Risk Exposures in Engineering Projects
- Growing Demand for Tailor-made Engineering Insurance
- Increasing Share by Project Related Policies in Engineering Insurance Market
- Utilization of Non-damaged Parametric Products to Cover New Risks in Engineering Insurance
- Economic Slowdown in Emerging Countries
- Increasing Protectionism Leading to Trade War Thus, Curbing Investment Spending and Insurance Demand
- 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
- Growing Investment in Renewable Energy Sources Amid Increasing Need to Meet Climate Change Target
- Complex Nature of Engineering Insurance Practices Owing to Involvement of Multiple Parties
- Maintaining Underwriting Discipline Amid Increasing Competition in Engineering Insurance Market
Engineering insurance is witnessing significant changes in recent past. Since early 2000, London has been the hub for engineering insurance especially for high value projects. However, recently, various other destination such as Singapore, Miami and Dubai have emerged. Additionally, various engineering projects have adopted cutting-edge technologies which has given the birth of new risks such as cyber risk. Emergence of new risks demands a radical change in the way engineering insurance are offered today, preferably changing the current business model of engineering insurance would be viable and far-fetched solution.
Analyst Comment"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 AudienceInsurance Providers, Insurance Brokers, End-users Industries, Potential Investors in Insurance, Market Research And Consultancy Firms, Government Organizations and Others
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