India’s Construction Sector Accelerates as Insurers Increase Focus on Risk and Project Governance, Aon Report Finds
- Insurer capacity growing in the construction insurance market
- Digital infrastructure investments reshaping construction risk
MUMBAI, June 9, 2026 –
Aon plc (NYSE: AON), a leading global professional services firm, today released India insights from its
2026 Global Construction Insurance and Surety Market Report, highlighting continued expansion in India’s construction sector, supported by sustained infrastructure investment, the energy transition and rapid growth in digital infrastructure.
As project pipelines grow and asset values rise, the operating environment in India is becoming more complex, with insurers applying greater focus on natural catastrophe exposure, project governance and delay risks.
According to Aon’s report, large scale infrastructure development, urbanisation and investments in high tech manufacturing continue to drive demand for construction insurance across India. The market remains growth-oriented, supported by increased capacity, insurer growth ambitions and improved reinsurance conditions. As a result, insurers are placing greater emphasis on early risk assessment and project governance, particularly as projects become larger.
“India remains a dynamic and rapidly expanding construction market within the Asia Pacific region,” said Sushant Sarin, head of strategy and Commercial Risk in India for Aon. “Large-scale developments face a range of natural hazards, including floods and earthquakes, with increasing focus on robust risk management from the outset. To navigate these challenges, businesses must invest in strong project governance, transparent data and realistic delay assumptions, while engaging with insurers early to manage costs and risk.”
Key Construction Risks in India
Technology led construction is emerging as a major growth area across the region, particularly in data centres, semiconductor plants and advanced manufacturing facilities, including cell, wafer, ingot and battery production. These projects require higher power capacity and present more complex risk profiles, driving demand for tailored underwriting solutions.
Climate risk is also a growing challenge for India’s construction and infrastructure sector, driven by the convergence of extreme heat, flooding and rapid urban development. Flooding or heat related disruption to power, transport or logistics networks can create cascading impacts, delaying construction timelines and affecting long term asset performance.
Insurer scrutiny intensifies across Asia Pacific
Across the Asia Pacific region, construction activity remains resilient, supported by ongoing investment in infrastructure and the energy transition. The construction insurance market has softened, with insurers increasing focus on catastrophe modelling, construction quality controls and contractor resilience, particularly in peak hazard zones and for technically complex works such as underground construction and energy infrastructure.
“India’s construction market continues to present significant opportunity,” said Nisheeth Srivastava, head of construction and infrastructure in India for Aon. “The sector is benefitting from sustained public infrastructure investment, new technology investment, energy transition and a highly competitive insurance market. Strong insurer appetite and improving reinsurance conditions are creating opportunities for project owners and contractors to secure broad and cost effective coverage, particularly when risks are well understood and actively managed.”
The report also highlights steady growth in the India surety market, as infrastructure investment accelerates and regulatory capital requirements make surety an attractive alternative to traditional bank guarantees. As a result, surety is becoming an increasingly valuable tool for project owners and contractors to optimize capital, manage counterparty risk and support delivery of India’s long term infrastructure pipeline.
About the Global Construction Insurance and Surety Market Report
Aon’s 2026 Global Construction Insurance and Surety Market Report examines global and regional trends across construction property insurance, professional liability, casualty insurance and surety. The report provides insights into pricing, capacity and insurer appetite to help construction stakeholders across the Asia Pacific region navigate an increasingly complex risk environment. More information about the report can be found
here.
About Aon
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