Surety Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Bond Type (Contract Surety Bond, Commercial Surety Bond, Fidelity Surety Bond, and Court Surety Bond), and Geography
The surety market was valued at US$ 16.07 billion in 2019 and is projected to reach US$ 25.18 billion by 2027; it is expected to grow at a CAGR of 6.4%from 2020 to 2027.
The global surety market encompasses a substantial number of market players operating in it, resulting in a fragmented global market. However, the surety market include a selected number of prominent market players, such as The Travelers Indemnity Company, Liberty Mutual Insurance Company, The Hartford, Chubb, and CNA Financial Corporation, with the considerable customer base and strong market position. At present, the global surety market is dominated by the developed regions, such as North America and Europe, accounting for more than 75% of the global surety market collectively. Factors such as aging infrastructure in developed countries,need for massive restoration investment, and acceptance of P3 models are contributing significant market share consolidation of the surety marketcompanies in North America and Europe. However, the surety market in South Americais anticipated to gain a significant traction and expected to witness the most attractive growth rate during the forecast period.
Impact of COVID-19 Pandemic on Surety Market
The construction industry across the world was witnessing significant growth prior to the emergence of COVID-19 in late 2019. The outbreak of COVID-19 has led the construction industry players to temporarily call off their respective projects. Due to unprecedented impact of COVID-19 and uncertainty in economic conditions of developedand developing countries, the construction industry is expected to witness a slower growth till 2021. Attributing to the fact that surety market is heavily driven by construction industry, a slowdown in the growth of construction industry is reflecting downfall in surety market globally.
Lucrative Regions for Surety Market
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Surety Market Insights
Rising need for innovative insurance solutions to offer prosperous opportunity to surety market
There is a high requirement for innovative construction insurance in high growth markets such as China since, One Belt One Road Initiative is anticipated to offer growth opportunities to the surety market. In 2013, China’s President launched the One Belt, One Road Initiative as a foreign policy directive. The determined investment strategy aims to encourage Chinese as well as global economic growth. Considered as a “mega infrastructure project,” the initiative focus on attracting investment chiefly in the transportation and energy sectors, which includes roads, bridges, railways, ports, and power grids. Commercial insurance is expected to notice consequent progress in project-related premium income across the fastest growing global insurance market.As per Swiss Re, around US$7 million in commercial premium has been already produced by projects in progress. Moreover, an additional expected premium of US$ 27 billion could be generated to fund future investments leading to completion of lined up projects by 2030. Considering these factors, the surety market is anticipated to be benefitted by the One Belt, One Road Initiative.
Bond Type-Based Market Insights
Surety bonds are obtained by principal parties to protect third parties from a failure to meet contractual obligations. There are four main types of bonds that serve different purposes namely: contract surety bond, commercial surety bond, fidelity surety bond, and court surety bond. The most common surety bonds are the commercial and contract surety bond that serve the purpose of protecting the public and private interests. The court and fidelity surety bonds protect against the litigation and theft. Surety bonds of all types cost a premium based on the performance of the business and credit score of the business owner which is between 1% and 15% of the bond value.
Surety Market, by Bond Type– 2019 and2027
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Strategic Insights
The players in the surety market focus on strategies such as mergers, acquisitions, and expansion to newer geographiesto maintain their positions in the market. A few developmentsby key players are listed below:
In 2019,Liberty Mutual Insurance Company entered into an agreement to acquire the global surety and credit reinsurance operations of AmTrust Financial Services, including AmTrust Surety, AmTrust Insurance Spain, Nationale Borg, and Nationale Borg Reinsurance. The company believes that this acquisition strengthens its global surety, reinsurance expertise, market leadership, and geographic scope.
In 2018, CNA Financial Corporation opened its new global headquarters in Chicago; this relocation aimed to help the employees to connect all that CNA has to offer its customers.
In 2018, American Financial Group announced entering into an agreement to acquire ABA Insurance Services Inc. for approximately US$ 28 million. This acquisition is aimed to strengthen the position of the company in the surety market
Surety Market – by Bond Type
- Contract Surety Bond
- Commercial Surety Bond
- Court Surety Bond
- Fidelity Surety Bond
Surety Market– by Geography
- North America
- US
- Canada
- Mexico
- Europe
- France
- Germany
- Italy
- UK
- Spain
- Rest of Europe
- Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
- Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
- South America (SAM)
- Brazil
- Rest of SAM
Company Profiles
- Crum & Forster
- CNA Financial Corporation
- American Financial Group, Inc.
- The Travelers Indemnity Company
- Liberty Mutual Insurance Company
- The Hartford
- HCC Insurance Holdings Inc.
- Chubb
- AmTrust Financial Services
- IFIC Security Group
1. INTRODUCTION
1.1 Scope of the Study
1.2 The Insight Partners Research Report Guidance
2. key takeaways
3. Surety market landscape
3.1 market overview
3.2 market segmentation
3.2.1 Global Surety Market – By Bond Type
3.2.2 Global Surety Market – By Geography
3.3 pest analysis
3.3.1 North America PEST Analysis
3.3.2 Europe PEST Analysis
3.3.3 Asia Pacific PEST Analysis
3.3.4 Middle East and Africa PEST Analysis
3.3.5 South America PEST Analysis
4. Surety market – key industry dynamics
4.1 key market drivers
4.1.1 Ageing infrastructure of developed economies creating a need for massive investments in its restoration
4.1.2 Global acceptance of Public Private Partnership Model anticipated to drive the Surety market growth
4.2 Key market restraints
4.2.1 Shortage of properly trained underwriter in the Surety Industry
4.3 key market opportunities
4.3.1 Rising need for innovative insurance solutions to offer prosperous opportunity to Surety market
4.4 Future trends
4.4.1 Adoption of Surety bond by diverse end-use industries
4.5 impact analysis of Drivers and restraints
5. Surety – global market analysis
5.1 Global Surety Market Overview
5.2 Global surety market Forecast and Analysis
6. surety market revenue and forecasts to 2027 – bond type
6.1 Overview
6.2 Global surety Market Breakdown, By bond type, 2019 & 2027
6.3 contract surety bond
6.3.1 Overview
6.3.2 Contract Surety Bond Market Forecasts and Analysis
6.4 commercial surety bond
6.4.1 Overview
6.4.2 Commercial Surety Bond Market Forecasts and Analysis
6.5 fidelity surety bond
6.5.1 Overview
6.5.2 Fidelity Surety Bond Market Forecasts and Analysis
6.6 court surety bond
6.6.1 Overview
6.6.2 Court Surety Bond Market Forecasts and Analysis
7. Global surety market – Geographical ANalysis
7.1 Overview
7.2 North America Surety Market Revenue and Forecasts to 2027
7.2.1 North America Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.2.2 North America Surety Market, by Bond Type
7.2.3 North America Surety Market Breakdown, by Key Countries
7.2.3.1 U.S. Surety Market Revenue and Forecasts to 2027 (US$ MILLION)
7.2.3.1.1 US Surety Market, by Bond Type
7.2.3.2 Canada Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.2.3.2.1 Canada Surety Market, by Bond Type
7.2.3.3 Mexico Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.2.3.3.1 Mexico Surety Market, by Bond Type
7.3 Europe surety Market Revenue and Forecasts to 2027
7.3.1 Overview
7.3.2 Europe Surety Market, by Bond Type
7.3.3 Europe Surety Market Breakdown by Key Countries
7.3.3.1 UK Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.3.3.1.1 UK Surety Market, by Bond Type
7.3.3.2 Germany Surety Market Revenue and Forecast to 2027 (US$ Million)
7.3.3.2.1 Germany Surety Market, by Bond Type
7.3.3.3 France Surety Market Revenue and Forecast to 2027 (US$ Million)
7.3.3.3.1 France Surety Market, by Bond Type
7.3.3.4 Spain Surety Market Revenue and Forecast to 2027 (US$ Million)
7.3.3.4.1 Spain Surety Market, by Bond Type
7.3.3.5 Italy Surety Market Revenue and Forecast to 2027 (US$ Million)
7.3.3.5.1 Italy Surety Market, by Bond Type
7.3.3.6 Rest of Europe Surety Market Revenue and Forecast to 2027 (US$ Million)
7.3.3.6.1 Rest of Europe Surety Market, by Bond Type
7.4 asia-pacific surety Market REVENUE AND FORECASTS TO 2027
7.4.1 Overview
7.4.2 APAC Surety Market, by Bond Type
7.4.3 Asia-Pacific Surety Market Breakdown by Key Countries
7.4.3.1 South Korea Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.4.3.1.1 South Korea Surety Market, by Bond Type
7.4.3.2 China Surety Market Revenue and Forecast to 2027 (US$ Million)
7.4.3.2.1 China Surety Market, by Bond Type
7.4.3.3 Australia Surety Market Revenue and Forecast to 2027 (US$ Million)
7.4.3.3.1 Australia Surety Market, by Bond Type
7.4.3.4 India Surety Market Revenue and Forecast to 2027 (US$ Million)
7.4.3.4.1 India Surety Market, by Bond Type
7.4.3.5 Japan Surety Market Revenue and Forecast to 2027 (US$ Million)
7.4.3.5.1 Japan Surety Market, by Bond Type
7.4.3.6 Rest of APAC Surety Market Revenue and Forecast to 2027 (US$ Million)
7.4.3.6.1 Rest of APAC Surety Market, by Bond Type
7.5 mea surety Market REVENUE AND FORECASTS TO 2027
7.5.1 Overview
7.5.2 MEA Surety Market, by Bond Type
7.5.3 MEA Surety Market Breakdown by Key Countries
7.5.3.1 Saudi Arabia Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.5.3.1.1 Saudi Arabia Surety Market, by Bond Type
7.5.3.2 UAE Surety Market Revenue and Forecast to 2027 (US$ Million)
7.5.3.2.1 UAE Surety Market, by Bond Type
7.5.3.3 South Africa Surety Market Revenue and Forecast to 2027 (US$ Million)
7.5.3.3.1 South Africa Surety Market, by Bond Type
7.5.3.4 Rest of MEA Surety market Revenue and Forecasts to 2027 (US$ Million)
7.5.3.4.1 Rest of MEA Surety Market, by Bond Type
7.6 South america surety Market Revenue and Forecasts to 2027
7.6.1 Overview
7.6.2 SAM Surety Market, by Bond Type
7.6.3 SAM Surety Market Breakdown by Key Countries
7.6.3.1 Brazil Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.6.3.1.1 Brazil Surety Market, by Bond Type
7.6.3.2 Rest of SAM Surety Market Revenue and Forecasts to 2027 (US$ Million)
7.6.3.2.1 Rest of SAM Surety Market, by Bond Type
8. Impact of COVID-19 Outbreak
8.1 Impact of COVID-19 Pandemic on Global Surety Market
8.1.1 North America: Impact Assessment of COVID-19 Pandemic
8.1.2 Europe: Impact Assessment of COVID-19 Pandemic
8.1.3 Asia-Pacific: Impact Assessment of COVID-19 Pandemic
8.1.4 Middle East and Africa: Impact Assessment of COVID-19 Pandemic
8.1.5 South America: Impact Assessment of COVID-19 Pandemic
9. Industry Landscape
9.1 Market Initiative
9.2 Merger and Acquisition
10. Competitive Landscape
10.1 Competitive Service Mapping
10.2 Market Positioning – Global Top 5 Players Ranking
11. Surety Market, Key Company Profiles
11.1 Crum & Forster
11.1.1 Key Facts
11.1.2 Business Description
11.1.3 Financial Overview
11.1.4 SWOT Analysis
11.1.5 Key Developments
11.2 CNA FINANCIAL CORPORATION
11.2.1 Key Facts
11.2.2 Business Description
11.2.3 Financial Overview
11.2.4 SWOT Analysis
11.2.5 Key Developments
11.3 American Financial Group, Inc.
11.3.1 Key Facts
11.3.2 Business Description
11.3.3 Financial Overview
11.3.4 SWOT Analysis
11.3.5 Key Developments
11.4 The Travelers Indemnity Company
11.4.1 Key Facts
11.4.2 Business Description
11.4.3 Financial Overview
11.4.4 SWOT Analysis
11.4.5 Key Developments
11.5 Liberty Mutual Insurance Company
11.5.1 Key Facts
11.5.2 Business Description
11.5.3 Financial Overview
11.5.4 SWOT Analysis
11.5.5 Key Developments
11.6 The Hartford
11.6.1 Key Facts
11.6.2 Business Description
11.6.3 Financial Overview
11.6.4 SWOT Analysis
11.6.5 Key Developments
11.7 HCC Insurance Holdings, Inc. (Tokio Marine & Nichido Fire Insurance Co., Ltd.)
11.7.1 Key Facts
11.7.2 Business Description
11.7.3 Financial Overview
11.7.4 SWOT Analysis
11.7.5 Key Developments
11.8 Chubb
11.8.1 Key Facts
11.8.2 Business Description
11.8.3 Financial Overview
11.8.4 SWOT Analysis
11.8.5 Key Developments
11.9 AmTrust Financial Services
11.9.1 Key Facts
11.9.2 Business Description
11.9.3 Financial Overview
11.9.4 SWOT Analysis
11.9.5 Key Developments
11.10 IFIC Security Group
11.10.1 Key Facts
11.10.2 Business Description
11.10.3 Financial Overview
11.10.4 SWOT Analysis
11.10.5 Key Developments
12. Appendix
12.1 About The Insight Partners
12.2 Glossary
12.3 Methodology
12.3.1 COVERAGE
12.3.2 Secondary Research
12.3.3 Primary Research
LIST OF TABLES
TABLE 1. Global surety Market Revenue and Forecasts to 2027 (US$ MILLION)
TABLE 2. global Surety Market Revenue and Forecasts to 2027 – By regions (US$ Million)
TABLE 3. North America SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 4. US Surety Market, by bond type –Revenue and Forecast to 2027 (US$ Million)
TABLE 5. Canada Surety Market, by bond type –Revenue and Forecast to 2027 (US$ Million)
TABLE 6. Mexico Surety Market, by bond type –Revenue and Forecast to 2027 (US$ Million)
TABLE 7. Europe SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 8. UK SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 9. GERMany SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 10. France SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 11. SPain SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 12. ITALY SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 13. rest of europe SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 14. APAC SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 15. South korea SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 16. china SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 17. Australia SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 18. India SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 19. Japan SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 20. REST OF APAC SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 21. MEA SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 22. Saudi Arabia SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 23. UAE SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 24. South africa SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 25. REst of MEa SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 26. sam SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 27. BRAzil SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 28. Rest of SAM SURety Market, by bond type – Revenue and Forecast to 2027 (US$ Million)
TABLE 29. Glossary of terms, Surety market
LIST OF FIGURES
FIGURE 1. Surety market Overview
FIGURE 2. Surety Market, by Bond type
FIGURE 3. Surety market segmentation
FIGURE 4. north america – pest analysis
FIGURE 5. europe – pest analysis
FIGURE 6. asia pacific – pest analysis
FIGURE 7. middle east and africa – pest analysis
FIGURE 8. SOUTH AMERICA – pest analysis
FIGURE 9. Surety Market Impact Analysis of Driver and Restraints
FIGURE 10. Global surety Market
FIGURE 11. Global Surety Market Forecast and Analysis, (US$ Million)
FIGURE 12. surety Market Breakdown, By bond type, 2019 & 2027 (%)
FIGURE 13. contract surety bond Market Revenue and Forecasts to 2027 (US$ MIllion)
FIGURE 14. Global commercial surety bond Market Revenue and Forecasts to 2027 (US$ MIllion)
FIGURE 15. Fidelity Surety BOnd Market Revenue and Forecasts to 2027 (US$ MIllion)
FIGURE 16. court surety bond Market Revenue and Forecasts to 2027 (US$ MIllion)
FIGURE 17. Surety Market, Global Breakdown by Geography, 2019 & 2027 (%)
FIGURE 18. North America surety Market Revenue and Forecasts to 2027 (US$ Million)
FIGURE 19. North America Surety Market Revenue Share, by Bond type, (2019 and 2027)
FIGURE 20. North America surety Market Breakdown by Key Countries, 2019 & 2027(%)
FIGURE 21. U.S. surety Market Revenue and Forecasts to 2027 (US$ MILLION)
FIGURE 22. Canada Surety Market Revenue and Forecasts to 2027 (US$ MILLION)
FIGURE 23. Mexico Surety Market Revenue and Forecasts to 2027 (US$ MILLION)
FIGURE 24. europe SURETY Market REVENUE AND FORECASTS TO 2027 (US$ Million)
FIGURE 25. Europe Surety Market Revenue Share, by Bond type, (2019 and 2027)
FIGURE 26. europe SURETY Market Breakdown by Key Countries, 2019 & 2027 (%)
FIGURE 27. uk SURETY Market REVENUE AND FORECASTS TO 2027 (US$ Million)
FIGURE 28. germany SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 29. france SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 30. spain SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 31. italy SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 32. rest of europe SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 33. asia-pacific SURETY Market REVENUE AND FORECASTS TO 2027 (US$ million)
FIGURE 34. APAC Surety Market Revenue Share, by Bond type, (2019 and 2027)
FIGURE 35. asia-pacific SURETY Market Breakdown by Key Countries, 2019 & 2027 (%)
FIGURE 36. south korea SURETY Market REVENUE AND FORECASTS TO 2027 (US$ Million)
FIGURE 37. china SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 38. Australia SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 39. India SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 40. japan SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 41. Rest of apac SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 42. mea SURETY Market REVENUE AND FORECASTS TO 2027 (US$ million)
FIGURE 43. MEA Surety Market Revenue Share, by Bond type, (2019 and 2027)
FIGURE 44. MEA SURETY Market Breakdown by Key Countries, 2019 & 2027 (%)
FIGURE 45. saudi arabia SURETY Market REVENUE AND FORECASTS TO 2027 (US$ Million)
FIGURE 46. uae SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 47. South Africa SURETY Market REVENUE AND FORECASTS TO 2027 (US$ MILLION)
FIGURE 48. Rest of MEA Surety market Revenue and Forecasts to 2027 (US$ Million)
FIGURE 49. SAM Surety Market Revenue and Forecasts to 2027 (US$ Million)
FIGURE 50. SAM Surety Market Revenue Share, by Bond type, (2019 and 2027)
FIGURE 51. SAM Surety MARKET Breakdown by Key Countries, 2017 & 2027(%)
FIGURE 52. Brazil surety Market Revenue and Forecasts to 2027 (US$ million)
FIGURE 53. Rest of SAM Surety Market Revenue and Forecasts to 2027 (US$ million)
FIGURE 54. Impact of COVID-19 Pandemic in North American Country Markets
FIGURE 55. Impact of COVID-19 Pandemic in Europe Country Markets
FIGURE 56. Impact of COVID-19 Pandemic in Asia Pacific Country Markets
FIGURE 57. Impact of COVID-19 Pandemic in Middle East and Africa Country Markets
FIGURE 58. Impact of COVID-19 Pandemic In South America Country Markets
The List of Companies - Surety Market
- CRUM & FORSTER
- CAN Financial Corporation
- American Financial Group, Inc.
- The Travellers Indemnity Company
- Liberty Mutual Insurance Company
- The Hartford
- HCC Insurance Holdings, Inc.
- CHUBB
- AmTrust Financial Services
- IFIC Security Group
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the globalsurety market.
- Highlights key business priorities in order to assist companies to realign their business strategies.
- The key findings and recommendations highlight crucial progressive industry trends in the globalsuretymarket, thereby allowing players across the value chain to develop effective long-term strategies.
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
- Scrutinize in-depth globalmarket trends and outlook coupled with the factors driving the market, as well as those hindering it.
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.
Frequently Asked Questions
The surety market penetration rates in North America region is higher than any other markets across the globe. This is attributed to most of U.S. State governments’ laws that mandate surety bonds. Both the U.S. and Canada surety markets are ruled by insurers, and banks play only a minor role.
Ageing power generation and distribution infrastructure are becoming a key biggest challenges for utilities in developed countries. For instance, in the U.S., the power grid is believed to be valued an estimated US $876 Bn, renovating infrastructure would cost hundreds of US$ Bn, as per the U.S Department of Energy. Furthermore, certain countries in the European region are citing the same issues.Upgrading generation, as well as transmission facilities in these countries, would draw significant investments hence, the Surety market is expected to bolster.
Contractbonds protects the owners in case a contractor backs out after winning a bid after the contractor wins a bid accepts to work on the project bid bond is replaced by a performance bond. The erformance surety bond protects the owner if the work done by the contractor is not according to the terms in the contract. The contract bond captures a significant share of the surety market and is growing continuously due to rapid increase in construction activities in various regions like APAC, Europe, and MEA. The contract surety bonds are replacing other guarantee methods like bank guarantees and pay on demand services.