Engineering Insurance Market

Engineering insurance is a type of insurance that protects against the financial risks posed by ongoing construction projects, installation projects, project machines and equipment. Engineering insurance is a type of insurance policy that covers a wide range of engineering-related risks. Furthermore, it is a comprehensive insurance policy that covers all risks associated with the resting, erection, and operation of any plant, machinery, or equipment. As the engineering industry involves creating and designing, as well as construction & building, there are more chances of construction-related accidents and hazards. An engineering industry policy, to put it another way, caters to various types of uncertainties that are associated with on-site construction, such as plants and machinery. Therefore, the surge in the demand for engineering insurance is expected to boost the market growth in the upcoming period.

The global engineering insurance market is segmented on the basis of insurance type, application and region. Based on insurance  type, the market is divided into Project Insurance, operational machineries insurance, business interruption insurance . The Project Insurance segment is further divided  into erection all risks insurance, contractors all risks insurance, contractor's plant and machinery insurance. The operational machineries insurance segment is further divided  into machinery breakdown insurance, boiler & pressure plant insurance, electronic equipment insurance, civil engineering completed risks insurance and deterioration of stocks insurance. In terms of application, the market is categorized into production and processing enterprises, oil and gas, power and utilities, heavy industries, transportation systems, heavy civil engineering projects, others.

Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Market Scope and Structure Analysis

COVID-19 Impact Analysis

• With COVID-19 having an impact on all aspects of personal and professional life, digitization has emerged as a new way for the world to adjust to the new normal. This is especially true in the engineering insurance industry, where insurers have begun to distribute their products and raise awareness through various digital channels.
• Insurers created new COVID-19-specific products to provide customers with various coverages that protect against the financial risks as a result of the COVID-19 outbreak. Since many construction projects were halted all of a sudden, there has been pressure on both the companies and the investors who pitched in either for construction or purchasing.

Top Impacting Factors

An increase in demand for tailor-made engineering insurance and growing preference for costly electronic equipment & the need to insure them are driving the growth of the market. In addition, the increasing need to absorb unforeseen losses during the construction and operation of plants helps propel the growth of the market. However, the economic slowdown in emerging countries might hamper the growth of the market. Contrarily, the emergence of new technologies in engineering practices is said to provide lucrative opportunities.

Increase in Demand for Tailor-Made Engineering Insurance

The rise in demand for engineering insurance is being witnessed as the contractors are also covered by insurance, wherein it provides financial protection against loss or damage incurred during the construction of projects.

Furthermore, engineering insurance mostly revolves around the company's mention of construction-related uncertainties on-site. It is required for civil engineering projects such as flyovers, buildings, and airports, among others. The insurance also protects in the event of a fire that occurs while working on a project. This is, however, largely covered by a separate policy known as fire insurance. Therefore, the rise in demand for engineering insurance is expected to drive the growth of the market during the forecasted period.

Growing Preference of Costly Electronic Equipment & the Need to Insure Them

Most of the time, for construction, different electronic machineries are used which are bound to be a bit costly. Therefore, the demand for the electronic equipment policy rose significantly over the years as it will be too hard to replace once the machinery gets damaged. Furthermore, this policy covers devices and systems that are susceptible to low power & voltage. As a result, electronic equipment such as UPSs, computers, and stabilizers, as well as medical equipment such as x-ray machines & ultrasound machines, are covered. The insurers will be responsible for the cost of repairs and replacements required to restore the device and equipment to its previous state under this policy. Therefore, the increased preference for getting the electronic equipment insured is driving the growth of the engineering insurance market during the forecasted period.

Key Benefits of the Report

• This study presents an analytical depiction of the engineering insurance market forecast along with the current trends and future estimations to determine the imminent investment pockets.    
• The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the market share.     
• The current market is quantitatively analyzed from 2021 to 2030 to highlight the engineering insurance market growth scenario.         
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the engineering insurance market trends.    
• The report provides detailed market analysis based on the present and future competitive intensity of the engineering insurance market analysis.

Questions Answered in the Engineering Insurance Market Research Report

• Which are the leading market players active in the engineering insurance market size?
• What would be the detailed impact of COVID-19 on the engineering insurance market?
• What are the current trends that will influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the engineering insurance market share?
• What future projections would help in taking further strategic steps?

 Engineering Insurance Market Report Highlights