India’s construction insurance landscape is witnessing robust momentum, underpinned by rapid urbanization and large-scale infrastructure development. As per Aon’s 2025 report, India stands out as a high-growth market within Asia, attracting strong interest from both domestic and international insurers.

Key Highlights:

• Favorable Rate Trends: India continues to enjoy a soft market cycle. Non-catastrophe-exposed portfolios are seeing rate decreases of up to 40%, reflecting high competition among insurers.
• Strong Insurer Appetite: There is a strong and growing appetite for construction risk, driven by India's ambitious infrastructure projects. Both domestic and global players are actively underwriting risks across segments.
• Ample Capacity: The market offers ample insurance capacity, enabling support for mega projects and facilitating competitive pricing structures. This reflects insurers’ confidence in the Indian market’s growth trajectory.
• Growth Drivers:
• Urban infrastructure development
• Real estate expansion
• Technology-driven construction projects (e.g., data centers, battery plants)
• Government-backed initiatives (e.g., Smart Cities Mission, National Infrastructure Pipeline)
• Resilience to Natural Catastrophes: While India does face periodic natural disaster exposure, most growth is concentrated in non-catastrophe-prone regions, making underwriting more favorable.
• Segment Focus: Real estate and high-tech industrial projects are key drivers of insurance demand. Construction of data centers and advanced industrial facilities is attracting heightened insurer interest.
• Broader APAC Context: India is among the best-performing markets in Asia, with Japan facing headwinds (rate hikes, capacity constraints) and China also maintaining a favorable but more moderated environment.