Surety Market Report 2026

The surety market size has grown strongly in recent years. It will grow from $20.92 billion in 2025 to $22.32 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to expansion of construction and infrastructure projects, increasing regulatory bonding requirements, growth in commercial contracting activities, rising adoption of contract risk mitigation tools, availability of insurance-backed guarantees.

The surety market size is expected to see strong growth in the next few years. It will grow to $28.84 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing investments in public infrastructure, rising demand for automated underwriting solutions, expansion of private construction activities, growing use of digital risk scoring models, increasing adoption of paperless bond processing. Major trends in the forecast period include increasing adoption of digital surety bond platforms, rising use of data analytics for risk assessment, expansion of electronic bond issuance, growing demand for infrastructure-linked surety products, enhanced focus on fraud prevention.

The increasing adoption of digital payment services is expected to drive the growth of the surety market in the coming years. Digital payments involve using electronic channels and mobile devices to facilitate monetary transactions online. Factors such as higher smartphone usage, improved internet access, enhanced security measures, and user convenience are driving the growth of digital payments. Surety provides a financial guarantee that ensures the performance and reliability of service providers, protecting users from potential losses due to fraud, service disruptions, or non-compliance with contractual obligations. For example, in July 2024, the European Central Bank, a Germany-based central bank for the Eurosystem, reported that in 2023, contactless card payments in the second half of the year increased by 16%, reaching 23.2 billion compared to the same period in 2022. As a result, the growing use of digital payment services is fueling the surety market.

Leading companies in the surety market are focusing on developing surety insurance to enhance financial security and address the growing demand for risk management solutions. Surety insurance, or surety bonds, provides a financial guarantee that obligations will be met, offering protection and assurance to parties involved in transactions and contracts. For instance, in July 2024, ICICI Lombard, an India-based insurance company, introduced surety insurance to provide financial guarantees that ensure contractors fulfill their obligations. This new product allows for greater financial flexibility and supports larger projects by offering both conditional and unconditional options, advanced risk management, and freeing up banking lines. Its introduction is a significant development in the surety insurance market, addressing the infrastructure sector's need for effective risk mitigation and enabling businesses to secure larger, high-value contracts.

In June 2024, Core Specialty, a US-based insurance company, acquired American Surety Company for an undisclosed amount. This acquisition is intended to strengthen Core Specialty’s position in specialty insurance by incorporating American Surety as its 17th business unit. The acquisition expands Core Specialty’s bond, credit, and guarantee sub-segment with new product lines, such as bail bonds and commercial surety bonds, enhancing its market presence and supporting its goal of leading in the profitable surety market. American Surety is a US-based company that provides surety bonds and insurance services.

Major companies operating in the surety market are Berkshire Hathaway Specialty Insurance Company, Liberty Mutual Group, Zurich Insurance Group Ltd, Chubb Limited, The Travelers Indemnity Company, The Hartford Financial Services Group Inc, Intact Financial Corporation, QBE Insurance Group Limited, Everest Group Ltd, CNA Financial Corporation, Markel Corporation, Arch Capital Group Ltd, Old Republic International Corporation, American Financial Group Inc, AmTrust Financial Services Inc, The Hanover Insurance Group Inc, Crum & Forster Insurance, Starr International Company Inc, Tokio Marine Holdings Inc, Aspen Insurance Holdings Limited, IAT Insurance Group Inc, Prime Insurance Company Limited, American Surety Company.

North America was the largest region in the surety market in 2025, and is expected to be the fastest-growing region in the forecast period. The regions covered in the surety market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the surety market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The surety market includes revenues earned by entities by providing services such as issuing performance guarantees, providing bond underwriting, and payment bonds. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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