Arch Report Flags Rising Construction Risks from Geopolitics and Climate Change
Event summary
- 85% of construction industry respondents reported moderate or greater risk exposure increase over the past year.
- Geopolitical instability (59%), supply chain disruption (52%), and climate-related events (36%) top risk concerns.
- Two-thirds of organizations increased risk and insurance spending in response to heightened uncertainty.
- Report based on survey conducted between April-May 2026 with global property owners, developers, and contractors.
The big picture
The report highlights how construction risks are becoming increasingly interconnected, with geopolitical instability and climate change creating complex loss scenarios. As projects face greater uncertainty around costs and delivery timelines, insurers play a critical role in helping firms assess evolving exposures. The findings suggest the industry is responding proactively through increased risk spending and contingency planning, but the long-term impact of these emerging risks remains uncertain.
What we're watching
- Geopolitical Impact
- How conflicts in regions like Iran and Ukraine will affect global construction project planning and procurement.
- Climate Adaptation
- The pace at which construction firms integrate flood risk assessments and mitigation into project planning.
- Insurance Dynamics
- Whether increased risk exposure will lead to higher premiums or more restrictive coverage terms.
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