Surety Development in Europe: What to Expect?

The European surety market has reached a mature stage after approximately 25 years of development, driven by the decline of banks in favor of other carriers, particularly after the implementation of Basel III. Despite its maturity, the market continues to grow due to the ongoing evolution of the industrial sector, increasing demands in construction and infrastructure - the main consumers of surety - and advancements in technology and the economy.

This market is highly competitive, with approximately two-thirds of the market share still dominated by banks. However, on the insurance side, market concentration in specific countries surpasses the overall concentration ratio of the entire European market as of 2021. The top three insurance companies collectively hold a footprint of around 21.5% in Europe.

Overall, the European surety market hosts a significant number of players, contributing to its vibrant and diverse landscape.