New York, USA, April 18, 2023 (GLOBE NEWSWIRE) -- According to a report published by Research Dive, the global surety market is anticipated to generate a revenue of $24,371.2 million and rise at a CAGR of 4.4% over the analysis timeframe from 2022 to 2031.
As per our analysts, the increasing demand for innovative construction insurance in developed economies is expected to propel the growth of the surety market over the forecast period. Besides, the rising demand for commercial insurance due to the increase in project-related premium income across the globe is further expected to bolster the growth of the market during the estimated period. Moreover, the increasing use of surety among small and medium-sized enterprises (SMEs) and service providers to get security against customer lack of payment is predicted to create immense growth opportunities for the surety market over the analysis period. However, the increased risk of a contracting party defaulting may hinder the growth of the market throughout the forecast period.
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Segments of the Surety Market
The report has divided the market into segments based on bond type, end-user, and region.
Bond Type: Commercial Surety Bond Sub-Segment to be Most Profitable
The commercial surety bond sub-segment is predicted to experience the fastest growth over the estimated timeframe. Commercial surety bonds often safeguard a principal’s vocation and are mandated by state legislation for specific businesses which is expected to foster the growth of the market sub-segment over the analysis period.
End-User: Enterprises Sub-Segment to be Most Productive
The enterprises sub-segment accounted for the highest market share in 2021. This is mainly due to the increasing demand for surety among various enterprises as they deal with a large amount of data and bulk trading. In addition, several medium-sized businesses often receive funding from a variety of banks and financial institutions, which is expected to augment the growth of the surety market sub-segment during the forecast period.
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North America Region to Hold the Maximum Share of the Market
The North America region of the surety market is expected to register the largest revenue over the estimated timeframe. This is mainly due to the continued attempts made by confirming banks and issuing banks to broaden the scope of their finance product across the region. Moreover, the rising trader knowledge of surety insurance and multinational firms working with regulatory bodies to conduct business overseas is expected to drive the regional growth of the market over the analysis timeframe.
Covid-19 Impact on the Surety Market
The outbreak of the Covid-19 pandemic has brought several uncertainties across various businesses. It has also severely impacted the surety market. This is mainly due to the sudden decrease in the number of construction projects across many developed and emerging nations. Moreover, many insurers raised premiums owing to an increase in the number of claims during the pandemic to maintain the company’s profitability which has badly affected the credit surety industry. All these factors have declined the growth of the market throughout the crisis.
Key Players of the Surety Market
The major players of the market include
- Liberty Mutual Insurance Company
- HCC Insurance Holdings Inc.
- The Hartford
- The Travelers Indemnity Company
- Chubb
- American Financial Group Inc.
- AmTrust Financial Services
- CNA Financial Corporation
- IFIC Security Group
- Crum & Forster
These players are widely working on the development of new business strategies such as mergers and acquisitions, partnerships and collaborations, and product development to attain a leading position in the global industry.
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For instance, in March 2023, Navitas Assurance Partners, a specialty managing general underwriter announced its collaboration with Crum & Forster’s Credit Division and Great American Insurance Company’s FCIA Trade Credit & Political Risk Division to offer highly rated trade credit insurance capacity to the North American energy markets. This collaboration would boost the financial strength of each company and allow them to focus on the energy sector to meet pent-up demand for alternative assurance products.
Further, the report also presents other crucial aspects including SWOT analysis, the financial performance of the key players, the product portfolio, and the latest strategic development.
More about Surety Market:
- How Surety Bonds are Revolutionizing Business: A Comprehensive Guide
- Growing Need for Innovative Insurance Solutions Globally to Propel the Growth of the Global Surety Market by 2031
