Insurers have been willing to increase coverage in key areas throughout 2025. While baseline policy terms remained stable, there was a growing trend of insurers agreeing to broader fire safety and cladding cover. Many policies currently include the IUA cladding and fire safety clauses, but insurers are increasingly willing to extend cover further than rectification only, albeit for future work and with an aggregated limit.

The long-term effects of the Building Safety Act remain unclear. A rise in high-value claims could prompt insurers to reconsider their approach to offering expansive coverage.

Rate reductions continued steadily, though not as aggressively as in previous years, as many firms had already benefited from substantial savings during recent renewals. Growing insurer appetite for well-managed businesses further contributed to a more competitive pricing environment for policyholders.

The favourable market conditions that began in 2023 have continued, with insurers maintaining ambitious growth strategies. Both new entrants and established players are actively expanding their portfolios, targeting UK and international businesses alike.

To achieve these goals, insurers are increasingly offering value-added services, such as contract reviews, and may further broaden their appetite to include products like single project professional indemnity (SPPI) and owner's protective professional indemnity (OPPI) policies. This diversified approach reflects insurers’ confidence in the construction sector's resilience and their commitment to capturing market share in an increasingly competitive environment.

Market capacity in 2025 has seen a further increase, driven by insurers’ return to profitability and a willingness to deploy more resources in the construction PI sector.

This growth has been facilitated by the emergence of new managing general agents (MGAs), contributing to high-capacity levels compared to previous years. The increase in insurer capacity has fostered a healthier, more dynamic competitive landscape and improved conditions for insureds.