India’s construction insurance market is experiencing strong growth, fueled by rapid urbanisation and large infrastructure projects, according to a new report by Aon.
Aon’s “2025 Global Construction Insurance and Surety Market” report highlights India as one of the fastest-growing markets in Asia. Both domestic and international insurers are showing keen interest. The country currently enjoys a soft market cycle, with insurance rates dropping by as much as 40% for portfolios not exposed to natural disasters. This reflects intense competition among insurers.
There is strong demand for construction risk coverage, driven by India’s ambitious infrastructure agenda. Insurers from India and abroad are actively underwriting projects across different sectors.
The market has ample insurance capacity to support mega projects, helping maintain competitive pricing. This also signals confidence in India’s construction growth prospects.
Key Growth Drivers
India’s government focus on urban infrastructure and real estate expansion are major growth factors. Technology-driven projects, such as data centres and battery plants, are also boosting the sector. Large government initiatives like the Smart Cities mission and the national infrastructure pipeline are creating significant opportunities.
Although India faces periodic natural disasters, most growth is concentrated in low-risk areas, making underwriting more favourable. Real estate developments and high-tech industrial projects remain key drivers of insurance demand. Construction of data centres and advanced industrial facilities is attracting increasing insurer interest.
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