The Europe surety market was valued at US$ 3,608.38 million in 2019 and is projected to reach US$ 5398.33 million by 2027; it is expected to grow at a CAGR of 5.8% from 2020 to 2027.
Presently, the surety market in Europe is witnessing entrance of new competitors from the U.S. Simultaneously, existing players are reinforcing their presence and increasing their trans-border business. Regardless of the excess of capacity and uncertainties in certain key countries, the Surety market in Europe remains strong. Thus, there are several opportunities as well as challenges that the surety market is facing in the region.
The European economies for the surety market are witnessing increasing investments contributed towards the technological advancement of the sure bonds. For instance in October 2018, Accenture and Zurich Benelux collaboratively introduced a block chain based solution, which would facilitate the insurer's customers in Benelux govern the surety bonds. The system has been integrated with the existing surety management - back end and developed a novel user interface that caters as a one-stop digital hub. More such technological initiatives in the European market are expected to streamline the surety bonds procedure and make it more transparent, thereby catalyzing the surety market.
In Europe, the COVID-19 have had a hard hit on Russia followed by Spain, the UK, and Italy. The governments of respective countries are continuously emphasizing measures to contain the spread of the virus across the borders. The construction sector play a crucial role in development of various countries in the European region. In the wake of COVID-19 pandemic, the construction sector players in every country in Europe has been witnessing gradual downfall in their business. The delay in on-going projects, delay in sanctioning of newer projects, and strict social distancing measures are some of the critical parameters stalling the construction industry in the Europe. This in turn is negatively affecting the surety market in the region. The European region consists of significantly higher number of surety writers and pertaining to the fact that, the impact of the pandemic is anticipated to continue till 2021, the businesses of surety writers is foreseen to be hindered. This projects slowdown in revenue generation in European surety market till 2021.
The overall Europe surety market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the surety market. The process also serves the purpose of obtaining overview and forecast for the surety market with respects to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in this process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Europe surety market. CNA Financial Corporation, The Travelers Indemnity Company, Liberty Mutual Insurance Company, and Chubb, among others are among the key players serving the surety market in Europe.