The report “North America Surety Market Forecast to 2027 – Impact of COVID-19 and Regional Analysis by Bond Type (Contract Bond, Commercial Bond, Court Bond, and Fiduciary Bond); and country ”has been added to ResearchAndMarkets.com from offer.
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 2020-2027 to reach 13,498.40 million US dollars by 2027.
The surety market is traditionally a local business based on local market know-how. However, with increasing globalization, large players in the surety market are moving into developing markets like Canada and Mexico. One of the major challenges facing surety companies is acquiring knowledge about the local political and regulatory landscape. Global companies, however, have the ability to hire professional local underwriters to compete in the market.
Many mature economies around the world face major challenges due to their aging infrastructure. For example, according to the American Society of Civil Engineers, the United States would need around US $ 4.5 billion by 2025 to improve the condition of its roads, bridges, airports, dams, schools, etc. . In addition, the aging of electricity production and distribution infrastructure is becoming a major challenge for public services in developed countries. For example, in the United States, the power grid is estimated to be valued at US $ 876 billion, infrastructure renovations would cost hundreds of billions of US dollars, according to the US Department of Energy. The upgrading of production, as well as transmission facilities in these countries, would attract significant investment and the bond market should therefore strengthen.
Since the United States has a higher concentration of players in the manufacturing and construction industry and the country experiences unprecedented growth in the number of patients infected with COVID-19, the government has adopted strict foreclosure measures, thus ending several construction activities. This reflects the delay in completing the project, which is a major concern for construction companies. As of December 31, 2019, 323 insurers in the country were reporting direct premiums written for the bond market. Insurers who have issued performance bonds are expected to see an increase in the frequency and severity of claims due to unemployment, limited cash flow and other phenomena impacting businesses.
Canada and Mexico have many small businesses active in the construction industry. The COVID-19 pandemic has raised significant concerns about their businesses as respective governments have enacted strict lockdowns and social distancing measures. As a result of the lockdown measures, several construction players in Canada and Mexico have experienced tremors in their respective activities. This is expected to continue through 2021, further slowing the year-over-year growth of the surety market in both countries.
CNA Financial Corporation, The Travelers Indemnity Company, Liberty Mutual Insurance Company, Chubb and The Hartford, among others, are among the major players in the surety market in North America.
Main topics covered:
2. Key points to remember
3. Research methodology
4. Landscape of the surety market
4.1 Market overview
4.2 PEST analysis
5. Surety Market – Key Market Dynamics
5.1 Key market factors
5.1.1 Aging infrastructure in North American economies creating a need for massive investment in its restoration
5.1.2 Global acceptance of the public-private partnership model intended to stimulate the growth of the surety market
5.2 Market restrictions
5.2.1 Shortage of properly trained underwriters in the surety sector
5.3 Main market opportunities
5.3.1 Growing number of small businesses in the region
5.4 Future trends
5.4.1 Adoption of bonding by various end-use industries
5.5 Impact analysis of drivers and restraint systems
6. Surety Market – North America Analysis
6.1 North America Surety Market Overview
6.2 Surety Market – Revenue and Forecast to 2027 (USD Million)
6.3 Market positioning – Five key players
7. Analysis of the bond market – By type of bond
7.2 Breakdown of the bond market, by type of bond, 2019 and 2027
7.3 Contractual bond
7.4 Commercial bond
7.5 Fiduciary bond
7.6 Judicial bond
8. Surety market – by country
8.2 Surety market, by country (2019 and 2027)
9. Impact of the COVID-19 pandemic epidemic
9.1 North America: Assessing the Impact of the COVID-19 Pandemic
10. Industry landscape
10.1 Market initiative
10.2 Merger and acquisition
11. Company profiles
11.1 Key facts
11.2 Company description
11.3 Financial overview
11.4 SWOT analysis
11.5 Key developments
CRUM & FORSTER
CNA Financial Corporation
American Financial Group, Inc.
The Travelers Indemnity Company
Liberty Mutual Insurance Company
HCC Insurance Holdings, Inc.
AmTrust Financial Services
IFIC security group
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