MECON has increased its Australian construction underwriting capacity to a total sum insured of $120 million for single projects, expanding the line it can place on individual risks and allowing for higher limits by referral.
The higher capacity applies to Section 1 (Material Damage) for single projects and includes Section 2 (Public Liability), effective March 10, 2026. MECON, part of the UAA Group, said the change responds to demand for larger lines on domestic construction risks and for more flexibility in how brokers structure placements. MECON has retained its existing policy wording, with amendments to reflect a revised insurer panel. The business has also obtained Lloyd’s coverholder status, which provides access to Lloyd’s capacity for Australian construction risks placed through brokers. MECON general manager Kishan Dasan said the new arrangements are aimed at brokers handling larger and more complex projects. “Our new capacity arrangements take effect 10th March 2026, offering greater flexibility and strong balance‑sheet security, together with MECON’s high-quality cover where it really counts and its specialised claims handling team when it really counts,” Dasan said.
MECON said the additional line may enable some intermediaries to place a greater share of mid‑ to large‑scale projects with a single market, potentially reducing the need for multi‑carrier towers on certain programs. The company also indicated that increased in‑house underwriting authority is expected to shorten turnaround times on submissions, which can be important for tenders and projects with fixed bid or funding deadlines.
The insurer said it will consider higher limits on referral, which may be relevant for major civil works, infrastructure projects, and large commercial developments requiring capacity above $120 million. MECON described the changes as intended to provide “more options, more solutions, and more certainty” for brokers working with contractors and principals across the construction sector. In practical terms, the firm said the capacity uplift may influence how brokers structure both new and renewal business where buyers are comparing coverage options, limit availability, and insurer credit strength.
Glenn Ross, UAA Group’s executive general manager – construction, encouraged brokers to approach MECON with larger or more complex submissions. “Our underwriters welcome the opportunity to review new business submissions and discuss upcoming projects which require increased capacity,” Ross said. Brokers are being referred to the MECON website for regional contact information for submissions and underwriting enquiries. “As always, we appreciate your continued support and look forward to working with you on your upcoming construction requirements,” Ross said.
MECON’s capacity adjustment is occurring against the backdrop of conditions outlined in Aon’s 2025 Global Construction Insurance and Surety Market Report. The report describes many construction insurance markets as being in a softening phase, with increased capacity and insurer growth targets contributing to more favourable terms in several product lines and territories. According to Aon, the volume of large, complex projects has risen, particularly in infrastructure, energy, and high‑tech manufacturing. These projects often require higher limits, specialised wordings, and bespoke risk transfer structures, creating a need for insurers and intermediaries that can assemble and manage significant capacity and provide technical claims support.
At the same time, Aon identifies constraints that continue to shape underwriting appetite and pricing. Natural catastrophe risk is a key factor: global disaster losses in 2024 are estimated at about US$368 billion, which the report notes is roughly 14% above the long‑term average. Rising catastrophe losses are affecting terms and capacity in some locations and for projects with substantial exposure to perils such as flood, cyclone, and bushfire.
The report also notes that a more segmented market is emerging in some areas. Projects with lower risk profiles or strong loss histories may see more competitive outcomes, while heavy civil works, projects with elevated catastrophe exposure and accounts with prior losses may face higher rate increases or tighter terms and conditions. Technological developments are another feature of the current landscape. Aon highlights advances in data analytics, satellite monitoring, and construction technology that can support risk assessment, site monitoring, and project controls. Cyber risk is identified as an increasingly important consideration both for insurers operating digital platforms and for construction clients dependent on connected systems and data‑rich project environments.
On the growth side, Aon points to increased infrastructure and energy investment, the expansion of high‑tech manufacturing (including data centres), and the development of construction markets in parts of Asia, Latin America, and Africa as key drivers of demand for construction insurance and surety. The report also notes rising interest in solutions that incorporate climate adaptation and resilience, as well as products linked to sustainable construction and green building initiatives.
MECON’s higher construction line and Lloyd’s coverholder status sit within this broader environment of expanding capacity, risk‑differentiated underwriting, and changing project profiles. The ability to deploy up to $120 million in total sum insured on a single project, with potential for higher limits on referral, may affect how brokers structure towers for local infrastructure, energy, and large property developments where lender and sponsor requirements around capacity, claims handling, and security are a central consideration.
