What are the Historical Developments and Current Growth Metrics of the Surety Market?
The surety market has seen considerable growth due to a variety of factors.
• The surety market has seen strong growth in recent years. It is expected to rise from $19.62 billion in 2024 to $21 billion in 2025, with a CAGR of 7.0%.
Growth is attributed to increased construction activities, rising infrastructure development, improving industry standards, innovations in construction, greater private sector investments, and expanding real estate development.
What Does Future Hold for The Surety Market By 2029?
The surety market is expected to maintain its strong growth trajectory in upcoming years.
• The surety market is projected to grow to $27.31 billion by 2029, with a CAGR of 6.8%.
This growth is fueled by the increasing demand for construction projects, rising government regulations, more infrastructure projects, technology adoption in underwriting, and the rise of SMEs. Trends include digital platform adoption, advancements in risk management, automated underwriting, digital verification, and fraud detection technologies.
What Are The Primary Growth Drivers In The Surety Market?
The surety market is anticipated to experience growth driven by the increasing adoption of digital payment services. Digital payments, which employ electronic channels and mobile devices to carry out financial transactions online, have gained popularity due to widespread use of smartphones, improved internet connectivity, enhanced security methods, and overall user convenience. Surety serves as a financial safeguard, reinforcing the credibility and performance of service providers while guarding users from possible loss stemming from fraud, interruption of service, or failure to fulfill contractual responsibilities. For example, as stated by the Ministry of Electronics & IT, an Indian ministry, in February 2023, the total digital transactions accounted for 8,840 crore ($1.056 billion) in 2021-2022 and reached 9,192 crore ($1.097 billion) by December 2022. Thus, the rising trend of utilizing digital payment services is fueling the expansion of the surety market.
What Is The Segmentation Of The Global Surety Market?
The surety market covered in this report is segmented –
1) By Bond Type: Contract Surety Bond, Commercial Surety Bond, Fidelity Surety Bond, Court Surety Bond
2) By Application: Government Agencies, Enterprise
3) By End User: Businesses, Contractors, Construction Organizations, Government Agencies, Suppliers, Service Providers And Individuals
Subsegments:
1) By Contract Surety Bond: Performance Bonds, Payment Bonds, Bid Bonds, Maintenance Bonds
2) By Commercial Surety Bond: License And Permit Bonds, Court Bonds (Commercial), Customs Bonds, Miscellaneous Commercial Bonds
3) By Fidelity Surety Bond: Employee Dishonesty Bonds, Business Service Bonds, ERISA Bonds (Employee Retirement Income Security Act)
4) By Court Surety Bond: Appeal Bonds, Judicial Bonds, Bail Bonds, Probate Bonds
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What New Trends Are Influencing The Surety Market?
Major firms active in the surety market are innovating their offerings with surety insurance, aimed at boosting financial safety and catering to increasing needs for risk management solutions. Also referred to as surety bonds, these provide a monetary promise of obligation fulfillment, imparting security and assurance to all parties in a range of transactions and contracts. To illustrate, ICICI Lombard, a prominent Indian insurance firm, rolled out surety insurance back in July 2024. This initiative was designed to offer financial assurances to support contractors in meeting their commitments. This product introduces an alternative to typical banking lines and accommodates larger projects by offering both conditioned and unconditioned alternatives, alongside enhancing risk control and financial flexibility. This debut holds considerable importance in the surety insurance market, as it caters to the growing demand in the infrastructure sector for effective risk dilution and aids companies in securing larger, high-value contracts.
Who Are the Key Players In The Surety Market?
Major companies operating in the surety market are:
• Berkshire Hathaway Specialty Insurance Company
• Nationwide Financial General Agency Inc.
• Liberty Mutual Group
• Zurich Insurance Group Ltd
• Chubb Limited
• The Travelers Indemnity Company
• The Hartford Financial Services Group Inc.
• Marsh & McLennan Companies Inc
• Intact Financial Corporation
• QBE Insurance Group Limited
• Aon plc
• 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.
• Crum & Forster Insurance
• Starr International Company Inc.
• Tokio Marine Holdings Inc.
• Allianz Trade
• Aspen Insurance Holdings Limited
• IAT Insurance Group Inc.
• EverQuote Inc.
• J.S. Held LLC
• Prime Insurance Company Limited
• American Surety Company
What Are The Regional Insights Into The Surety Market?
North America was the largest region in the surety market in 2024, and is expected to be the fastest-growing region in the forecast period. The regions covered in the surety market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
