Surety
The surety market is considered to have materially changed for the construction sector in the last twelve months as a result of ongoing insolvencies, with some losses still making headlines. Contractors are having to focus their attention on how to navigate the market and secure the required level of capacity to meet their ongoing needs. Enhanced information flow is key to ensuring sufficient bond capacity is available to deal with the expected increase in demand for surety bonds due to the uncertainty across the sector.
Rating
The market has seen an increase in claims activity, which has started to drive a steady trend of premium rates upwards.
Appetite
Sureties are continuing to analyse cases in far greater detail, with the suite of financial information required becoming much more extensive.
Capacity
Capacity constraints continues to be a common theme with sureties being selective as to where they deploy their capacity.