Aon report: Insurance and surety bonds gain importance in Romania’s construction market

Insurance and surety bonds are playing an increasingly essential role in the sustainable development of the construction market, according to Aon’s 2025 Construction Insurance and Surety Market report. The study comes against the backdrop of inflationary pressures, economic volatility, and large-scale projects involving both public and private funding.   In Romania, construction remains one of the most dynamic sectors, but risks are intensifying year after year. Companies face a shortage of skilled labour, rising material prices, political and economic instability, and delays in accessing European funds, particularly from the PNRR programme.   The adoption of green technologies and digitalisation, necessary for competitiveness, adds further costs. Compared with mature markets such as Germany or France, where sustainability and digitalisation are already standard, Romania is still consolidating.   “The construction sector is an important driver of Romania’s economy, but also one of the most vulnerable to risks: from rising costs and labour shortages to delays in execution and financing issues. In an environment where the sustainability of projects is being tested, surety bonds and insurance can no longer be treated as mere contractual obligations. They become strategic tools for protecting capital and ensuring project completion,” said Eugen Anicescu, CEO of Aon Romania.   Globally, the report points to a sharp increase in demand for insurance and surety products, especially in public infrastructure projects financed through European and national funds. The surety market is expected to grow by around 5 percent annually, reaching USD 30 billion by 2030.   In Romania, demand for surety bonds has already increased significantly over the past 12 months, following the insolvency of several major players. Road and rail infrastructure are the most active segments, with PNRR-financed projects requiring strong guarantees. The most requested products include bid bonds, performance bonds, advance payment bonds, and maintenance bonds. Surety insurance is also gaining traction among SMEs due to its flexibility compared with bank guarantees.   “In Romania, we are seeing growing demand for surety bonds, particularly in large infrastructure projects, where eligibility requirements are becoming stricter. Bid bonds, performance bonds, and advance payment bonds are mechanisms that enable companies to access major contracts and provide trust to their partners. Our role is to deliver tailored solutions that help them complete projects on time, avoid blockages, and protect their capital,” said Silvia Serrano Cabrera, Executive Director & Head of Construction and Surety Bonds Practice, Commercial Risk Solutions.   The report also notes a clear shift in mindset: companies are moving from reaction to prevention, integrating risk management from the design phase, collaborating more closely with brokers, and using digital tools for monitoring and reporting.   “The local market has huge potential, but to unlock it, companies must adopt an integrated vision of risk. Surety bonds and insurance are no longer just a checkbox in project documentation, but a real resource that allows them to attract financing, win tenders, and remain competitive in an increasingly demanding environment,” added Serrano Cabrera.   Aon’s findings also address common myths, such as the perception that insurance is merely a formality for tenders or that surety policies are difficult and costly. In reality, they are becoming more accessible, especially for small and medium-sized projects, and play a growing role in providing financial protection.