Construction in Asia Pacific region remains resilient as insurers emphasize risk governance
Aon plc (NYSE: AON), a leading global professional services firm, today released insights from its 2026 Global Construction Insurance and Surety Market Report for Asia Pacific, highlighting that construction activity across the region remains resilient in 2026, supported by sustained investment in infrastructure and accelerating the investment in digital infrastructure.
The report finds that the operating environment is becoming more demanding with insurers placing greater emphasis on natural catastrophe exposure, project governance and delay risks as project scale and complexity increase.
“Asia Pacific continues to be one of the most active construction regions globally,” said Terence Williams, head of Commercial Risk in APAC for Aon. “Hyperscale data centres, battery and semiconductor plants are driving demand for higher-value, more complex builds, often with extended timelines and greater delay exposure. Insurers are taking a closer look at how projects are governed and how data supports risk decisions.”
According to the report, large‑scale infrastructure development, urbanisation and investment in high‑tech manufacturing continue to drive demand for construction insurance across the Asia Pacific region. As project pipelines expand and asset values rise, insurers are focusing more closely on how risks are assessed, governed and mitigated from early in the construction lifecycle.
Across the region, the construction insurance market remains growth-oriented, supported by abundant capacity, insurer growth ambitions and improved reinsurance performance. Capacity remains strong and pricing competitive particularly in markets such as China and India, while Japan is seeing more pressure following regulatory developments, increased pricing and heightened natural catastrophe exposure.
While the regional construction insurance market has softened overall, insurers remain focused on natural catastrophe risks. Well-managed projects continue to attract support, but greater scrutiny is applied to catastrophe modelling, construction quality controls and contractor resilience, particularly in peak hazard zones and for technically complex works such as underground construction and major complex infrastructure. For large and complex civil projects, international capacity and layered programme structures are often required to secure adequate coverage.
Technology‑led construction is also emerging as a major growth area across the region. Data centres, semiconductor plants and battery manufacturing facilities are increasing in scale, bringing higher power demands and more complex risk profiles that require tailored underwriting approaches.
Vincent Banton, head of construction and infrastructure in Asia for Aon, said, “Asia remains a region of opportunity but with increasing risk complexity. Insurers are backing projects with well-structured governance frameworks and clear risk ownership. For complex projects, underwriting is now as much about how risks are managed as where they are located. Early engagement with insurers and disciplined risk management matter more than ever.”
The report also highlights steady growth in the Asia Pacific surety market, as infrastructure investment accelerates and regulatory capital requirements position surety as an attractive alternative to traditional bank guarantees. While pricing has remained generally flat across Asia, surety capacity is increasing in several markets, particularly outside Australia.