At Conway, we’re always monitoring the markets and their various changes. In this piece, we’re going to outline some of the major shifts we’ve observed in the market — and tell you how Conway can help you better prepare for all of these new realities.
Spotlighted first is the field of construction, specifically the crane and rigging sector. There has been a recent growth in the market size for crane rental, exceeding $13.5 billion in 2019 and estimated to grow at more than 4.5% CAGR between this year and 2026. The logic behind this is simple — purchasing a new crane involves significant upfront cost, which diverts a large amount of capital from other operating expenses. Additionally, when cranes are rented, the renter bears less of the additional costs associated with crane rental, such as storage costs, licensing, and more. This market growth is expected to remain slow as the world works through the current pandemic, but it is set to reach even greater heights once travel and import restrictions loosen as the prospect of a vaccine for COVID-19 becomes more realistic.
Recent housing data released by the US Government implies that many people who live in urban areas are considering leaving those areas in favor of the suburbs. Construction, as a result, is slowly returning, and insurance markets are responding accordingly. Naturally, this growth will also spell opportunity for insurers, as both the crane rental companies and those renting the cranes will need to seek coverage.
Turning to the markets as a whole, the present market conditions don’t show signs of reverting to pre-pandemic conditions soon. According to Willis Towers Watson’s 2021 Insurance Marketplace Realities report, commercial insurance prices in North America are on track to increase in almost every line. The pandemic is not the sole factor causing these rising prices; while the present crisis certainly exacerbates the situation, a rise in the frequency and severity of natural disasters around the world, the continued increase in man-made property damage losses, and the heightening severity for all liability losses owing to the oft-discussed factor of “social inflation.” However, rising rates in some areas are not likely to continue to rise at their current pace, instead leveling off to a slowly-increasing rate sometime around mid-2021.
Conway is the best assistant in navigating all of these changes. Our programs boast the A.M. Best “A” Rated Carriers, industry tailored loss control, nationwide availability, and so much more. Pair those things with over 25 years of industry experience and you can be sure that Conway will work with you to provide the best solutions for your business.
Conway offers solutions for different construction industries such as:
Crane & Rigging, Scaffold Contractors, Steel Erection, and also Equipment Rental Companies.
Including coverage options for general liability, automobile, riggers liability, property, inland marine, umbrella and excess. To get started, please observe our submission requirements below.
- Supplemental Application
- ACORD Applications, including FEIN#
- 5 Years Currently Valued Loss Runs
- MVRs for Drivers & Operators
- Job Ticket or Rental Agreement
If you have any questions or simply would like more information, please contact Ken Helmick.