Aon released India insights from its 2026 Global Construction Insurance and Surety Market Report, highlighting continued growth in India’s construction sector, supported by sustained infrastructure investment, the energy transition and rapid expansion in digital infrastructure. According to the report, India’s construction insurance market remains growth-oriented, backed by increasing insurer capacity, insurer growth ambitions and improved reinsurance conditions. However, as project pipelines expand and asset values rise, insurers are placing greater focus on natural catastrophe exposure, project governance and delay risks. Aon said large-scale infrastructure development, urbanisation and investments in high-tech manufacturing are driving demand for construction insurance across India. Insurers are also placing greater emphasis on early risk assessment and stronger project governance as projects become larger and more complex. Sushant Sarin, Head of Strategy and Commercial Risk in India, Aon, said India remains a dynamic and rapidly expanding construction market within the Asia Pacific region. He said large-scale developments face natural hazards such as floods and earthquakes, making robust risk management important from the start. He added that businesses must invest in strong project governance, transparent data and realistic delay assumptions, while engaging with insurers early to manage costs and risk. The report noted that technology-led construction is emerging as a major growth area, particularly in data centres, semiconductor plants and advanced manufacturing facilities, including cell, wafer, ingot and battery production. These projects require higher power capacity and have more complex risk profiles, increasing the need for tailored underwriting solutions. Climate risk is also becoming a growing challenge for India’s construction and infrastructure sector due to the combined impact of extreme heat, flooding and rapid urban development. Aon said disruptions to power, transport or logistics networks can create cascading impacts, delaying construction timelines and affecting long-term asset performance. Nisheeth Srivastava, Head of Construction and Infrastructure in India, Aon, said India’s construction market continues to offer significant opportunity. He said sustained public infrastructure investment, new technology investment, the energy transition and a competitive insurance market are creating opportunities for project owners and contractors to secure broad and cost-effective coverage when risks are well understood and actively managed. The report also highlighted steady growth in India’s surety market, as infrastructure investment accelerates and regulatory capital requirements make surety an attractive alternative to traditional bank guarantees. Aon said surety is becoming a valuable tool for project owners and contractors to optimise capital, manage counterparty risk and support India’s long-term infrastructure pipeline.