Like other industries, construction and insurance are undergoing a transformation as we approach 2025. Factors such as the pursuit of greater efficiency, sustainability, resilience, and the adoption of new technologies are redefining the global landscape. Each region brings its own perspective and strategy, contributing to the sector's collective evolution.
The "Global Construction Rate Trends Report" for the first quarter of this year highlights that the shortage of skilled workers is worsening in the United States, with estimates indicating the need to add at least 500,000 people to meet projected construction demand. The problem is also growing in Europe and Latin America, and the lack of skilled personnel is even more critical in Asia.
"This shortage forces many contractors and project owners to resort to less experienced or trained workers, which can lead to lower quality construction and less adherence to safety protocols. For this reason, insurers are paying increasing attention to timelines and estimated costs when evaluating and pricing each project," he argues.
Increased material prices have an impact
Add to that economic factors such as the sustained rise in construction material prices, which are driving up project costs. This directly impacts the calculation of premiums, since in many cases these are based on the total value of the project. "Recent tariff measures affecting the import and export of materials could also intensify this upward trend," he points out.
It notes that each region faces these challenges from different contexts. In Asia, growth continues to be driven by government stimulus and strong private investment, especially in infrastructure and energy. In Australia, moderate growth is expected, led by the residential sector and government policies focused on affordable housing. In Europe, the market remains stable, with a strong focus on the sustainable energy transition, although the shortage of skilled labor remains an issue.
Latin America
WTW's global report on construction insurance market trends for the first quarter of 2025 reveals a challenging yet dynamic environment. Globally, the industry faces pressures stemming from: a shortage of skilled labor, which impacts both the quality and completion times of projects.
Similarly, the increase in material and logistics costs, impacted by inflation, tariffs and supply chain disruptions, and the growing exposure to catastrophic risks (Nat-Cat),
such as fires, hurricanes or floods, generate increasing insurance pressure.
Likewise, technological changes, which are transforming the design, execution and assurance of
works, from artificial intelligence to modular construction, the energy transition and sustainability, are redefining the priorities of the sector, with increasing investments
in green infrastructure, hydrogen, wind and solar.
"In this context, Latin America emerges as a region with high
growth potential, but also with significant structural challenges," the study explains.
Conclusion
2025 represents a turning point for the construction sector in Latin America. The region has the opportunity to position itself as a strategic hub in the energy transition and infrastructure modernization, but this requires sophisticated risk management, a technical approach, and openness to new insurance solutions.
"Those players who manage to anticipate risks, develop projects with a robust ESG vision, and structure their insurance programs strategically will not only mitigate their exposures but also capture value in an increasingly demanding and competitive market," he concludes.
Source: https://www.wtwco.com/es-mx
Photo: External source.
