This was first published by The Insurer
As global investment in infrastructure, energy transition and major civil works accelerates, carriers across the London Market are sharpening their construction propositions.
Capacity is returning, new players are emerging and established markets are doubling down on expertise. But amid this growth lies a clear divide: While appetite for construction risk has expanded, the pool of truly experienced technical underwriters remains limited.
Arch Insurance International (Arch) believes that’s precisely where it can stand out.
“We’ve built a dedicated construction team to bring something distinct and valuable to the market,” says Tim Chapman, Head of Construction at Arch Insurance International.
“We want to operate at the highly technical end of the market, providing real expertise and meaningful lead capacity. Rather than pursuing volume, this is about underwriting complex projects that can often be difficult to place.”
The launch of the new construction unit is rooted in both customer demand and market timing. Chapman explains that construction was the natural next step in Arch’s ambition to write a broader suite of cover for its clients.
“Construction is often the more challenging element of our operational clients’ insurance needs, and we wanted to offer a true solution,” he says.
“By extending into construction, we’re able to develop deeper, long-term relationships with clients who want a partner who understands their complete risk profile.”
But the move isn’t just reactive. It’s also positioned ahead of a wave of opportunity.
Arch recognised “the significant level of investment expected over the next decade in infrastructure and energy transition projects,” Chapman notes, adding that this is likely to fuel sustained demand for sophisticated insurance offerings.
The goal is clear: Arch wants to be viewed as a relevant, technically driven lead market that can set strong terms and conditions from day one.
A Team Built for Technical Leadership
The group behind the strategy — Chapman, alongside senior underwriters Stephen Convery and Kevin Lumiste — is intentionally compact and senior-led.
The team is supported by an underwriting assistant but built without legacy infrastructure or inherited portfolios.
“That gives us the flexibility to make quick, informed decisions and to consider complex or challenging risks that others may step away from,” Convery says.
The trio’s backgrounds illustrate why Arch sees technical differentiation as a competitive edge. Chapman is a Chartered Civil Engineer with hands-on site and design experience. The team also has more than 60 collective years of construction underwriting expertise across major infrastructure, power, tunnelling, nuclear and energy transition projects.
“We each have over 20 years of underwriting experience,” says Lumiste. “Writing and leading complex risks requires specialist knowledge and the ability to structure robust terms and conditions.
“There are only a handful of markets globally that can credibly lead this type of business and we believe Arch is among them,” Lumiste added.
Beyond underwriting, the team plays an active role in shaping the global construction market through involvement in the London Engineering Group (LEG) and the International Association of Engineering Insurers (IMIA).
“That technical leadership is a defining part of who we are,” says Convery.
Market Conditions: Nuanced, Not Soft
Although many see construction rates easing, Chapman argues that the narrative oversimplifies reality.
“While there is softening in parts of the construction sector, we wouldn’t describe the market as uniformly soft,” he says.
“Market conditions vary depending on project type, technical complexity and region. Pricing remains resilient in more complex classes where emerging materials, technologies and design uncertainty require disciplined underwriting.”
That nuance is especially important in a world where climate volatility, geopolitical tension and supply chain pressures continue to reshape risk.
“These evolving trends are still working their way through claims data,” Chapman adds, “and they will continue to influence pricing strategies and underwriting discipline.”
Arch’s focus is firmly on large, complex risks, including major civil engineering, power, industrial and nuclear projects, with a broad appetite spanning tunnels, bridges, transport, LNG, renewable power and transition infrastructure.
Geographically, the team is targeting markets such as the U.S., Canada and Australia, where large-scale infrastructure investment and technical risk profiles align with their strengths.
Their offering spans Contractors’ All Risks (CAR), Engineering All Risks (EAR), delay in start-up and primary liability cover delivered globally across company paper and Lloyd’s platforms.
“Having the option to write from Lloyd’s or via company paper gives our brokers and clients flexibility not every market can offer,” says Lumiste.
Competing in a Crowded Field
As interest in construction coverage grows — both from a buyer and seller perspective — the competitive landscape is shifting rapidly. But Arch believes its proposition fills a gap.
“The sector is expanding and naturally attracting new entrants,” Convery notes. “But the constraint isn’t capital, it’s underwriting expertise.”
Many carriers may want to lead, he says, but far fewer have the capability.
“At Arch, we’ve invested in the expertise required to lead the most technical end of the market. We are here for the long term.”
Responsiveness and accessibility are central pillars of Arch’s strategy.
“We know brokers value direct access to empowered underwriters, especially for complex placements,” Chapman says.
“There’s a culture of curiosity and agility at Arch,” says Lumiste. “We’re willing to look at unusual risks others may avoid.”
“We also regularly collaborate with our other London Market underwriting teams, enabling us to provide more holistic solutions for our clients,” adds Convery. “For example, we work closely with our Onshore and Offshore Energy teams led by Hannah Hutton and Elizabeth Thompson. We’ve also worked alongside our market-leading Casualty team, led by James Mecham to craft multi-line solutions for clients.”
Building a Leading Position
With the foundations now in place, momentum is building.
“Success for us over the next 12 to 24 months is about firmly establishing Arch’s construction team as one of the key lead markets in London,” Chapman says.
Their ambition is measured not by premium volume, but by impact.
“We want to be recognised as a market that provides solutions for complex risks and as a consistent, long-term partner to brokers and clients,” he adds.
“In an increasingly complex world, brokers and clients need responsive markets that can deliver the right outcomes. Our role is to be a consistent, solution-driven partner and to lead with confidence,” Chapman concludes.