The global 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% during 2020-2027.
The surety market penetration rate in North America region is higher than any other markets across the world. This is attributed to most of the US State governments’ laws that mandate surety bonds. Both the US and Canada surety markets are ruled by insurers, and banks play only a minor role. Majority of the countries have not witnessed significant increase in the number of global surety market players entering in their market in the recent past. However, Europe, on the other hand, has noticed a slight increase in the number of global surety market players’ entering the region to fulfil the demand. In other regions, increasing competition and pressure from global surety market players is not equivalently visible. In several countries such as Japan and certain SAM countries, the global surety market players have minimal or no access to the market. While in countries such as Chile and Ecuador, the global surety market players have entered the countries by acquiring local players instead of establishing their own presence.
The surety market is heavily impacted by the COVID-19 outbreak. The surety writers across the globe are experiencing shocks as the performance of construction industry is heavily impacted by COVID-19 outbreak. The shortage of materials as a result of supply chain disruptions; funding put on hold, labor shortage, and very limited contracts to the construction companies, are some of the parameters that have impacted the global construction sector. Since, the surety market players have a higher dependency on construction industry players, the impact of COVID-19 on construction industry is also showcasing negative effects on surety market. The global surety market is anticipated to require more than a year’s time to revive to normalcy, depending on the construction sector.
Based on bond type, the global surety market is segmented into contract surety bond, commercial surety bond, court surety bond, and fidelity surety bond. The contract surety bond accounts for the highest market share in 2019, while the court surety bond segment is foreseen to grow at a prime rate during the forecast period.
The overall surety market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the surety market. The process also serves the purpose of obtaining overview and forecast for the surety market with respects to all the segments. It also provides the overview and forecast for the global surety market based on all the segmentation provided with respect to five major regions?North America, Europe, Asia Pacific, the Middle East and Africa, and South America. Additionally, primary interviews were conducted with industry participants and commentators to validate data, as well as to gain more analytical insights into the topic. The participants who take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultant such as valuation experts, research analysts and key opinion leaders specializing in the surety market.
Crum & Forster; CNA Financial Corporation; American Financial Group, Inc.; The Traveler Indemnity Company; Liberty Mutual Insurance Company; The Hartford; HCC Insurance Holdings, Inc.; Chubb, AmTrust Financial Services; and IFIC Security Group are among the major players operating in the global surety market.