Hong Kong insurers tighten pricing on complex construction risks, Aon says

Underwriters sharpen scrutiny on high-risk projects amidst rising catastrophe exposure.

Insurers in Hong Kong are maintaining competitive conditions in the construction insurance market but are applying stricter pricing for complex projects, according to a report by professional services firm Aon plc.

The Global Construction Insurance and Surety Market Report found that underwriters remain selective, particularly for high-severity property risks, although capacity for construction property insurance and construction all risks (CAR) coverage remains adequate with terms tightening for higher-risk occupancies.

In the professional liability insurance market, pricing remains competitive for standard architects and engineers (A&E) coverage, but shifts to more technical pricing for complex or prototypical designs.

Insurer appetite also varies by project type and discipline, with placements increasingly shaped by lead underwriting terms.

Across Asia Pacific, insurers are placing greater emphasis on natural catastrophe exposure, project governance and delay risks as projects grow in scale and complexity.

“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.”

The report said insurers are also increasing scrutiny on catastrophe modelling, construction quality controls, and contractor resilience, particularly for technically complex and high-risk projects.

Head of construction and infrastructure in Asia for Aon Vincent Banton said insurers are placing more importance on governance and risk management practices for complex developments.

“Insurers are backing projects with well-structured governance frameworks and clear risk ownership,” Banton said.