PUBLISHER: Grand View Research | PRODUCT CODE: 1511902
PUBLISHER: Grand View Research | PRODUCT CODE: 1511902
The global trade credit insurance market size is anticipated to reach USD 22.13 billion by 2030, exhibiting a CAGR of 11.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. 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 to redefine the way that businesses transact.
The increasing partnerships between the market players to expand their offerings across various regions are 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, 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.