The global trade credit insurance market size is anticipated to reach USD 22.13 billion by 2030, registering a CAGR of 11.1% over the forecast period. The growth of the market can be attributed to the increasing uncertainty and non-payment frauds. Furthermore, the rise in the import and export trades worldwide is also anticipated to drive the market’s growth.
Recently, venture capital firms have started focusing on insurance start-ups, assisting them in raising funds to expand their product portfolios and strengthen their market position. For instance, in June 2022, Hokodo Services Ltd, an insurance company based in London, announced that it raised USD 40 million through a series B funding round led by Notion Capital, a venture capital fund. The company aimed to utilize these funds for redefining the way that businesses transact.
The increasing partnerships between the market players to expand their offerings across various regions is anticipated to drive the market’s growth. For instance, in June 2022, Coface, a trade credit insurance provider, entered into a strategic partnership with Doha Insurance Group, an insurer in Qatar. This partnership was aimed at offering credit insurance products to companies based in Qatar and assisting them in boosting their growth in their export and domestic markets.
The COVID-19 pandemic significantly impacted the global industry. Lockdowns were implemented due to the pandemic, which led to a temporary prohibition on import and export, and manufacturing across multiple industries. Furthermore, it resulted in a sudden drop in the demand for trade credit insurance policies. However, the temporary shutdown of production units led to increased losses for businesses, due to which defaults in payment have risen tremendously, acting as one of the key drivers of the industry.
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Recently, venture capital firms have started focusing on insurance start-ups, assisting them in raising funds to expand their product portfolios and strengthen their market position. For instance, in June 2022, Hokodo Services Ltd, an insurance company based in London, announced that it raised USD 40 million through a series B funding round led by Notion Capital, a venture capital fund. The company aimed to utilize these funds for redefining the way that businesses transact.
The increasing partnerships between the market players to expand their offerings across various regions is anticipated to drive the market’s growth. For instance, in June 2022, Coface, a trade credit insurance provider, entered into a strategic partnership with Doha Insurance Group, an insurer in Qatar. This partnership was aimed at offering credit insurance products to companies based in Qatar and assisting them in boosting their growth in their export and domestic markets.
The COVID-19 pandemic significantly impacted the global industry. Lockdowns were implemented due to the pandemic, which led to a temporary prohibition on import and export, and manufacturing across multiple industries. Furthermore, it resulted in a sudden drop in the demand for trade credit insurance policies. However, the temporary shutdown of production units led to increased losses for businesses, due to which defaults in payment have risen tremendously, acting as one of the key drivers of the industry.
Trade Credit Insurance Market Report Highlights
- The large enterprises segment accounted for the largest share in 2022. The growth can be attributed owing to the help offered by trade credit insurance to large national and multi-national companies to improve credit management, introduce lines of credit, expand sales markets, enhance their balance sheet to increase shareholder value and protect cash flow
- The whole turnover coverage segment led the industry in 2022. The whole turnover trade credit insurance policies provide better protection and is an excellent risk management solution, as it allows for coverage for all the accounts receivable and reduces credit risk, thereby fueling the segment’s growth
- The international application segment dominated the market in 2022. The growth can be anticipated owing to the factors such as low risk and greater confidence due to no fear of non-payment by foreign buyers
- Food & beverage as a single individual segment dominated the market in 2022. The growth of the segment can be attributed to a high degree of credit risk in the food & beverage sector due to the involvement of perishable items and the reliance on a few large customers
- Europe dominated the market in 2022. The growing adoption of trade credit insurance policies across the region is anticipated to fuel the regional market’s growth
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Table of Contents
Chapter 1 Methodology and Scope
Chapter 2 Executive Summary
Chapter 3 Trade Credit Insurance Market Variables and Trends
Chapter 4 Trade Credit Insurance Market: Coverage Estimates & Trend Analysis
Chapter 5 Trade Credit Insurance Market: Enterprise Size Estimates & Trend Analysis
Chapter 6 Trade Credit Insurance Market: Application Estimates & Trend Analysis
Chapter 7 Trade Credit Insurance Market: End Use Estimates & Trend Analysis
Chapter 8 Trade Credit Insurance Market: Regional Estimates & Trend Analysis
Chapter 9 Trade Credit Insurance Market - Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
- Allianz Trade
- Atradius N.V.
- Coface
- American Interantional Group, Inc. (Aig)
- Zurich
- Chubb
- Qbe Insurance Group Limited
- Great American Insurance Company
- Aon Plc
- Credendo
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 110 |
| Published | May 2023 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 9.56 Billion |
| Forecasted Market Value ( USD | $ 22.13 Billion |
| Compound Annual Growth Rate | 11.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
