The North America surety market was valued at US$ 8,573. 43 million in 2019 and is expected to grow at a CAGR of 6. 4% during the forecast period from 2020–2027 to reach US$ 13,498. 40 million by 2027.
New York, Sept. 26, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "North America Surety Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Bond Type ; and Country" - https://www.reportlinker.com/p05974409/?utm_source=GNW
The surety market is traditionally a local business based on know-how of the local market.However, with increasing globalization, large surety market players are setting up operations in developing markets such as Canada and Mexico.
One of the major challenge faced by surety companies is to acquire the knowledge on local political and regulatory landscape. Global companies, however, have the capacity to hire professional local underwriters to compete in the market.
Many of the mature economies across the globe are facing major challenges owing to their ageing infrastructure. For instance, as per the American Society of Civil Engineers’, the US would need around US$ 4.5 Tn by 2025 to upgrade the state of its roads, bridges, airports, dams, schools, and more. Moreover, ageing power generation and distribution infrastructure are becoming a key biggest challenges for utilities in developed countries. For instance, in the US, the power grid is believed to be valued an estimated US$ 876 Bn, renovating infrastructure would cost hundreds of US$ Bn, as per the US Department of Energy. Upgrading generation, as well as transmission facilities in these countries, would draw significant investments hence, the surety market is expected to bolster.
Since, the US has a higher concentration of manufacturing and construction industry players, and the country is experiencing unparalleled growth in COVID-19 infected patients, the government has enacted strict lockdown measures, thereby terminating several construction activities.This has been reflecting delay in project completion, which is a key concern for the construction companies.
As of December 31, 2019, there were 323 insurers in the country that reported direct premium written for the surety market.The insurers that wrote performance bonds are expected to observe a rise in claim frequency and severity as a result of unemployment, constrained cash flows, and other phenomena impacting businesses.
Canada and Mexico have numerous smaller enterprises operating in the construction industry.The COVID-19 pandemic has raised significant concerns over their businesses as respective governments have enacted strict lockdown and social distancing measures.
Attributing to the lockdown measures, several construction players in Canada and Mexico experienced tremors in respective business. This situation is foreseen to continue till 2021, which is further expected to stall the year-on-year growth of surety market in the two countries.
The overall North America surety market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the surety market.
The process also serves the purpose of obtaining overview and forecast for the surety market with respects to all the segments pertaining to the region.Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic.
The participants who typically take part in this process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the North America surety market. CNA Financial Corporation, The Travelers Indemnity Company, Liberty Mutual Insurance Company, Chubb, and The Hartford among others are among the key players serving the surety market in North America.
Read the full report: https://www.reportlinker.com/p05974409/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: firstname.lastname@example.org US: (339)-368-6001 Intl: +1 339-368-6001