Construction growth in the US is becoming increasingly selective, creating a more uneven insurance market as brokers follow demand into infrastructure, advanced manufacturing and dense urban development while traditional sectors remain weaker.
Ryan Powers (pictured), senior vice president and head of construction at QBE North America, said the industry is still expanding, but the growth is concentrated in a narrower set of project types.
“We still expect modest growth, but I think it's highly selective on where that's coming from,” Powers said. “Obviously, data centers are driving the overall construction sector. But there are other pockets of opportunity like public infrastructure, battery plants, and maybe semiconductor facilities.”
Office and hospitality construction remain softer, while single-family residential activity is also subdued. Powers said mixed-use and multifamily construction is continuing in high-density areas, giving brokers a more fragmented demand.
Large projects are competing for skilled workers and critical materials at a time when contractors already face labor shortages. Powers said contractors are looking at alternative sources for components as tariffs and trade routes shift, while limited availability of skilled workers can extend project schedules. “If you don't have those critical components, it could slow down the project as well. We are starting to see project delays,” he said.
Delays can create additional administrative work for brokers, particularly where extensions or changes in project timelines require coverage to be maintained beyond the original schedule. While projects delays are still being absorbed by the market, Powers said the continuity of coverage depends on carrier support.
Insurance capacity and demand is also diverging. On general liability, Powers described conditions as relatively stable, with low- to mid-single-digit movement and ample capacity. He also noted that some construction risks are beginning to migrate back from the excess and surplus lines market into admitted placements.
Excess liability remains more difficult, particularly at the lead layer. “Leads are still a challenge and coming at a premium,” Powers said. “There's a dance that carriers and brokers do between capacity there.”
Property, by contrast, has softened sharply. Powers said the market “got turned on its head pretty much overnight in 2026,” leaving brokers to navigate very different conditions depending on the coverage being placed.
The broader shift in construction demand also comes as claims severity remains a concern across the sector. “Frequency of claims, I think we're getting better at as a whole,” Powers noted. “But when something bad happens, it seems to really develop very quickly.”
He pointed to litigation funding, social inflation and rising defense costs as factors that continue to push casualty losses higher.
Brokers may be dealing with a softer property market and more admitted options for certain casualty risks, but they are also working against a construction environment where project types, labor availability and loss trends are moving in very different directions.
For 2027, Powers expects technology adoption to become another important variable. Contractors are increasingly using artificial intelligence for design planning, site safety and administrative tasks, potentially shortening project timelines while creating new questions around professional responsibility.
“I think the adoption of AI does not relinquish an architect or an engineer from their ultimate responsibility,” Powers said. “It can certainly get them there faster, but we still need humans to review the efficacy of those designs.”
