Dublin, Dec. 06, 2024 (GLOBE NEWSWIRE) -- The "Surety Market Report 2024" has been added to ResearchAndMarkets.com's offering.
The surety market size has grown strongly in recent years. It will grow from $18.38 billion in 2023 to $19.62 billion in 2024 at a compound annual growth rate (CAGR) of 6.8%. The growth during the historical period can be attributed to several factors such as increased construction activities, expanded infrastructure development, enhanced construction industry standards, innovations within the construction sector, rising private sector investments, and the expansion of real estate development.
The surety market size is expected to see strong growth in the next few years. It will grow to $25.6 billion in 2028 at a compound annual growth rate (CAGR) of 6.9%. The projected growth during the forecast period can be attributed to several factors such as rising demand for construction projects, stricter government regulations, an increase in infrastructure projects, greater adoption of technology in underwriting, and a growing number of small and medium-sized enterprises (SMEs).
Key trends anticipated in this period include the adoption of digital platforms, advancements in risk management tools, automated underwriting processes, improvements in digital verification methods, and enhancements in fraud detection technology.
The growing use of digital payment services is expected to significantly drive the growth of the surety market. Digital payment services involve the use of electronic channels and mobile devices to facilitate online monetary transactions. The rise in smartphone usage, improved internet access, advanced security measures, and user convenience are key factors driving the adoption of digital payments. Surety services play a crucial role by providing financial guarantees that ensure the performance and reliability of service providers, protecting users from potential losses due to fraud, service disruptions, or non-compliance with contractual obligations. For example, in February 2023, the Ministry of Electronics & IT, an India-based government ministry, reported that the total value of digital transactions amounted to 8,840 crore ($1.056 billion) in 2021-2022 and reached 9,192 crore ($1.097 billion) by December 2022. This growth in digital payment usage is driving the surety market forward.
Leading companies in the surety market are focusing on developing surety insurance to enhance financial security and address the growing demand for risk management solutions. Surety insurance, or surety bonds, provides a financial guarantee that obligations will be met, offering protection and assurance to parties involved in transactions and contracts. For instance, in July 2024, ICICI Lombard, an India-based insurance company, introduced surety insurance to provide financial guarantees that ensure contractors fulfill their obligations. This new product allows for greater financial flexibility and supports larger projects by offering both conditional and unconditional options, advanced risk management, and freeing up banking lines. Its introduction is a significant development in the surety insurance market, addressing the infrastructure sector's need for effective risk mitigation and enabling businesses to secure larger, high-value contracts.
In June 2024, Core Specialty, a US-based insurance company, acquired American Surety Company for an undisclosed amount. This acquisition is intended to strengthen Core Specialty's position in specialty insurance by incorporating American Surety as its 17th business unit. The acquisition expands Core Specialty's bond, credit, and guarantee sub-segment with new product lines, such as bail bonds and commercial surety bonds, enhancing its market presence and supporting its goal of leading in the profitable surety market. American Surety is a US-based company that provides surety bonds and insurance services.
Major companies operating in the surety market are Berkshire Hathaway Specialty Insurance Company, Nationwide Financial General Agency, Liberty Mutual, Zurich Insurance, Chubb, The Travelers Indemnity Company, The Hartford Financial Services Group, Marsh & McLennan Companies, Intact Financial, QBE Insurance Group, Aon, Everest Group, CNA Financial, Markel, Arch Capital Group, AssuredPartners, Old Republic International, American Financial Group, AmTrust Financial Services, The Hanover Insurance Group, Crum & Forster Insurance, Starr International Company, Tokio Marine Holdings, Allianz Trade, Aspen Insurance Holdings, IAT Insurance Group, EverQuote, J.S. Held, Prime Insurance Company and American Surety Company.
This report focuses on surety market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Markets Covered:
- By Bond Type: Contract Surety Bond; Commercial Surety Bond; Fidelity Surety Bond; Court Surety Bond
- By Application: Government Agencies; Enterprise
- By End User: Businesses; Contractors; Construction Organizations; Government Agencies; Suppliers; Service Providers And Individuals
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 175 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value (USD) in 2024 | $19.62 Billion |
| Forecasted Market Value (USD) by 2028 | $25.6 Billion |
| Compound Annual Growth Rate | 6.9% |
| Regions Covered | Global |
Key Topics Covered:
1. Executive Summary
2. Surety Market Characteristics
3. Surety Market Trends and Strategies
4. Surety Market - Macro Economic Scenario
5. Global Surety Market Size and Growth
5.1. Global Surety Market Drivers and Restraints
5.2. Global Surety Historic Market Size and Growth, 2018-2023, Value ($ Billion)
5.3. Global Surety Forecast Market Size and Growth, 2023-2028, 2033F, Value ($ Billion)
6. Surety Market Segmentation
6.1. Global Surety Market, Segmentation by Bond Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Contract Surety Bond
- Commercial Surety Bond
- Fidelity Surety Bond
- Court Surety Bond
6.2. Global Surety Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Government Agencies
- Enterprise
6.3. Global Surety Market, Segmentation by End User, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
- Businesses
- Contractors
- Construction Organizations
- Government Agencies
- Suppliers
- Service Providers and Individuals
7. Surety Market Regional and Country Analysis
7.1. Global Surety Market, Split by Region, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
7.2. Global Surety Market, Split by Country, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8-29. Country Specific Surety Market Analysis
30. Surety Market Competitive Landscape and Company Profiles
30.1. Surety Market Competitive Landscape
30.2. Surety Market Company Profiles
- Berkshire Hathaway Specialty Insurance Company
- Nationwide Financial General Agency
- Liberty Mutual Group
- Zurich Insurance Group
- Chubb Limited
31. Surety Market Other Major and Innovative Companies
- The Travelers Indemnity Company
- The Hartford Financial Services Group Inc.
- Marsh & McLennan Companies Inc
- Intact Financial Corporation
- QBE Insurance Group Limited
- Aon
- Everest Group Ltd
- CNA Financial Corporation
- Markel Corporation
- Arch Capital Group Ltd
- AssuredPartners Inc.
- Old Republic International Corporation
- American Financial Group Inc.
- AmTrust Financial Services Inc.
- The Hanover Insurance Group Inc.
32. Global Surety Market Competitive Benchmarking
33. Global Surety Market Competitive Dashboard
34. Key Mergers and Acquisitions in the Surety Market
35. Surety Market Future Outlook and Potential Analysis
35.1 Surety Market in 2028 - Countries Offering Most New Opportunities
35.2 Surety Market in 2028 - Segments Offering Most New Opportunities
35.3 Surety Market in 2028 - Growth Strategies
For more information about this report visit https://www.researchandmarkets.com/r/p0hm6a
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