Surety
Not surprising, the surety market is facing its challenges given the increase in construction insolvencies over the last twelve months, with some notable losses making the headlines.
Whilst the current climate does have a contagion effect across the market, it is important to note that the surety market remains open for business and continues to support the sector. This is welcomed particularly as we see an increase in demand for surety products as project owners/employers seek security to mitigate against contractor uncertainty.
Rating
Although the construction sector remains unsettled, and following an increase in claims activity, we have not yet seen any dramatic rate increases, however as we approach the end of 2023 and into 2024 it would be prudent to factor in potential increase in costs when sourcing capacity from the surety market.
Appetite
Sureties are continuing to analyse cases in far greater detail with the suite of financial information required becoming much more extensive.
Capacity
As we predicted in our last market update, we are now seeing constraints in bonding capacity as sureties continue to be selective as to where they deploy their capacity.