Aon has published a report on construction insurance and surety market trends in New Zealand, finding that digital infrastructure investment and natural hazard exposure are reshaping insurance requirements.
Construction activity in New Zealand remains steady, supported by spending on infrastructure, utilities and technology-led projects such as data centres. Risk is becoming more complex as larger, longer-duration projects face exposure to earthquakes, severe weather, flooding, supply-chain disruption and changing loss-modelling requirements.
That shift is changing how insurers assess projects. Underwriters are placing more weight on project governance, the quality of risk data and exposure across the life of a project, especially where digital infrastructure schemes involve larger sites, higher power needs and more complex transitions into operations.
Regional trends
Across Asia Pacific, construction activity continues to be driven by infrastructure development, the energy transition and investment in digital assets. Insurers are increasingly differentiating projects by governance standards, technical complexity and the quality of risk information provided, particularly for larger and longer-running developments.
The report points to a more competitive insurance market in many regions, but discipline remains for large projects that are technically demanding or exposed to catastrophe risk. As a result, developers and contractors seeking cover for major New Zealand schemes may still face close scrutiny even as broader market conditions improve.
Data centres are among the clearest examples of the changing profile of construction work. Across the region, these projects are growing in scale and are often associated with longer build times, more complex engineering demands and significant transition risks once construction ends and operations begin.
Terence Williams, Head of Commercial Risk in Asia Pacific at Aon, linked that pattern to broader shifts in regional investment.
"The Asia Pacific region continues to be one of the most active construction regions globally," Williams said.
"Demand for hyperscale data centres and advanced manufacturing is driving a new wave of larger, longer-duration projects. As a result, insurers are placing greater emphasis on how these projects are structured and delivered over their full lifecycle."
New Zealand focus
In New Zealand, natural hazard exposure remains a central issue for insurers, particularly on civil and infrastructure projects. Seismic risk, extreme weather and flood exposure are influencing how cover is priced and structured, and how risk is shared between project participants.
The findings suggest that project structure and oversight during construction are becoming more important in securing terms. This is especially relevant for projects expected to run for long periods, rely on stretched supply chains or face workforce constraints.
The report also highlights delay in start-up risk, including how contractors and project sponsors manage work sequencing, supply-chain disruption and labour availability, all of which can affect completion timetables and potential losses.
Michael Twyman, General Manager of Specialty in New Zealand at Aon, said the country's risk profile requires early planning.
"Construction activity in New Zealand remains robust, but the country's natural hazard profile means risk management needs to be front of mind from day one," Twyman said.
"Projects that are well planned, clearly structured and supported by strong delivery teams are best positioned to secure competitive insurance terms, particularly as builds become longer in duration."
The report examines trends in construction property insurance, professional liability, casualty insurance and surety, alongside views on pricing, insurer capacity and appetite in global, regional and local markets.