Trade Credit Insurance Global Market Report 2024

The trade credit insurance market size has grown strongly in recent years. It will grow from $11.22 billion in 2023 to $12.26 billion in 2024 at a compound annual growth rate (CAGR) of 9.2%. Historical growth is attributed to factors such as global economic uncertainty, the expansion of markets and international trade, risk mitigation support for small and medium enterprises (SMEs), compliance with regulatory standards, as well as enhanced access to financing and improved credit terms.

The trade credit insurance market size is expected to see strong growth in the next few years. It will grow to $17.48 billion in 2028 at a compound annual growth rate (CAGR) of 9.3%. The anticipated growth in the forecast period is tied to global trade volatility, a heightened emphasis on supply chain resilience, the digitalization of trade finance, the emergence of new market players, and strategic risk management in a post-pandemic context. Major trends in this period encompass the utilization of blockchain for heightened security, a surge in demand for non-cancellable policies, strategies for mitigating supply chain disruptions, ongoing changes in regulatory frameworks, and the rise of parametric insurance solutions.

The trade credit insurance market is poised for growth due to the surge in global trade activities. This insurance shields receivables from credit risks in international trade. A notable increase in world trade, reaching $28.5 trillion in 2021 according to UNCTAD data from February 2022, indicates a growing demand for trade credit insurance, driven by escalating import and export activities worldwide.

Anticipated economic fluctuations and uncertainties are poised to fuel the growth of the trade credit insurance market. These fluctuations, encompassing changes in GDP growth, stock market volatility, and exchange rate fluctuations, significantly impact businesses and individuals, influencing risk landscapes and insurance factors. For example, a report by the Office for National Statistics in September 2020 highlighted that economic uncertainty had a considerable impact on the turnover of more than a third (35%) of businesses by October 2022, showcasing the importance of these fluctuations in trade credit insurance.

Technology advancements are a significant trend shaping the trade credit insurance market, prompting major players to focus on developing innovative solutions. In October 2021, LiquidX, a US-based financial technology solutions provider, launched its InBlock Digital Policy Management pilot, leveraging Distributed Ledger Technology (DLT), smart contracts, and artificial intelligence (AI). This pioneering solution automates policy administration and compliance, integrating trade credit insurance policies into financial workflows. Through collaboration with financial institutions and businesses, LiquidX aims to enhance the efficacy and user experience of this innovative technology, automating management for multi-buyer and single-buyer insurance programs.

Prominent players in the trade credit insurance market are innovating their product offerings to cater to evolving business needs. These innovations encompass digitizing trade credit insurance, providing credit management tools, and offering more adaptable and personalized insurance solutions. For instance, in July 2022, the Export Credit Guarantee Corporation of India (ECGC) announced a novel scheme to extend enhanced export credit risk insurance cover, insuring up to 90% of credit risk in export finance. This initiative aims to benefit small-scale exporters availing export credit from banks, providing increased stability and facilitating easier access to export credit, ultimately supporting industries and exporters. The scheme aligns with ECGC's efforts to bolster and promote Indian exports by offering credit risk protection and easing trade finance from banks.

In August 2022, HUB International Limited (Hub), a US-based insurance brokerage and financial services firm, acquired Intercontinental Growth Strategies, LLC (IGS) for an undisclosed amount. This acquisition is expected to increase the HUB's reach in terms of both geography and industry and product knowledge. Intercontinental Growth Strategies is a US-based trade credit insurance broker that uses strategies to minimize risk and maximize growth in global trade.

Major companies operating in the trade credit insurance market report are Export Development Canada, AXA SA, American International Group Inc., Chubb Limited, Liberty Mutual Insurance Company, Sompo Japan Insurance Inc., Mapfre S.A., Marsh & McLennan Companies Inc., Cesce SpA, QBE Insurance Group Limited, Markel Corporation, Aon PLC, CNA Financial Corporation, Hannover Re, Willis Towers Watson Public Limited Company, Zurich Insurance Group AG, AmTrust Financial Services Inc., Tokio Marine HCC, Mercury Insurance Brokers Ltd., Atradius N.V., Euler Hermes Aktiengesellschaft, Hiscox Ltd., Coface SA, Compagnie Française d'Assurance pour le Commerce Extérieur (Coface), CBL Insurance Limited, Credendo Group, Nexus Underwriting Management Limited, Elevate Insurance, China Export & Credit Insurance Corporation, Sinosure, CNA Hardy.

Europe was the largest region in the trade credit insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global trade credit insurance market during the forecast period. The regions covered in the trade credit insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the trade credit insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Trade credit insurance comprises two primary components: products and services. Trade credit insurance products serve as protective measures for receivables against credit risks, available for purchase. They typically include coverages such as whole-turnover coverage and single-buyer coverage, catering to both domestic and export contexts. Services in this domain support various industry verticals such as food and beverages, IT and telecom, metals and mining, healthcare, energy and utilities, automotive sectors, and others.

The trade credit insurance market research report is one of a series of new reports that provides trade credit insurance market statistics, including trade credit insurance industry global market size, regional shares, competitors with a trade credit insurance market share, detailed trade credit insurance market segments, market trends and opportunities, and any further data you may need to thrive in the trade credit insurance industry. This trade credit insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The trade credit insurance market includes revenues earned by entities by providing accounts receivable insurance, debtor insurance, and export credit insurance. 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.