State of the Insurance Market

2024 Initial Outlook:

Let's Talk

Market Updates

We have seen continued growth in the construction market, and sureties have shown continued profitability and low loss activity. However, financial strain due to supply and labor challenges, rising interest rates, restricted bank credit, etc., continue to impact the industry. The Surety market is still relatively soft, driven by sufficient reinsurance capacity and new surety companies entering the market.

Rate Forecast
Surety - Bonds: Flat


Contractors will want to work with a trusted surety advisor who understands the surety market complexities and nuances. It is also important for contractors to have CPAs, financial advisors, and attorneys with construction industry experience to help them keep their financials and contracts rock solid as they face headwinds. This is not the time for contractors to get out of their comfort zone. They would be wise to remain a good surety bond risk by:

  • Being selective about jobs they bid and take — pick the ones where performance seems certain.
  • Focusing on core competencies and avoid taking on tangential work.
  • Working in geographies where they have experience and understand how to execute well.
  • Cultivating enough skilled workers. They can establish training programs to develop their own talent or look for other talent pools by collaborating with national associations such as Associated Builders and Contractors and Associated General Contractors of America, or unions.
  • Looking ahead — prepare for a slowdown by ensuring overhead is in line with a potential dip in revenue.

Explore the Report

The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.