PUBLISHER: The Business Research Company | PRODUCT CODE: 1678575
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678575
Trade credit insurance is a valuable financial risk management tool safeguarding businesses from losses due to unpaid trade-related obligations. It shields products and services against non-payment or delayed trade credit payments arising from commercial or political risks.
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 from The Business Research Company 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 size has grown strongly in recent years. It will grow from $12.21 billion in 2024 to $13.34 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to global economic uncertainty, market expansion and international trade growth, risk mitigation for small and medium enterprises (SMEs), compliance with regulatory requirements, 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 $19.25 billion in 2029 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to global trade volatility, increased focus on supply chain resilience, digitalization of trade finance, emergence of new market entrants, strategic risk management in a post-pandemic landscape. Major trends in the forecast period include blockchain technology for enhanced security, increased demand for non-cancellable policies, risk mitigation strategies for supply chain disruptions, evolving regulatory landscape, rise of parametric insurance solutions.
An increase in the global import and export of goods and services is projected to drive the growth of the trade credit insurance market. Exporting involves selling products and services to foreign countries, while importing refers to acquiring goods and services from abroad and bringing them into one's own country. Trade credit insurance is utilized to protect trading companies' receivables from credit risks, and trade credit itself serves as a financial tool for producers, importers, and exporters to streamline their financial operations. Consequently, the growth in trade has led to a heightened demand for trade credit insurance. For example, in October 2024, the World Trade Organization (WTO), an international governmental organization based in Switzerland, reported that global goods trade is expected to grow by 2.7% in 2024, slightly above the previous estimate of 2.6%, according to an updated forecast by WTO economists on October 10. Additionally, the volume of world merchandise trade is anticipated to increase by 3.0% in 2025. Therefore, the surge in global imports and exports is significantly contributing to the growth of the trade credit insurance market.
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.
Technological advancements have become a significant trend gaining traction in the trade credit insurance market. Major companies in this sector are focused on creating innovative technological solutions to enhance their competitive edge. For example, in April 2024, Allianz Trade, a France-based trade credit insurance provider, launched a next-generation Trade Credit Insurance product. This B2B insurance solution is designed to cover the non-payment risks associated with trade receivables, activating when a customer is unable to pay according to the terms of an agreed contract. The product also includes several features, such as enhanced offerings with retrospective cover, CEND, and delayed effect cover. Additionally, it improves the user experience by streamlining documentation and providing online access, while also expanding opportunities for international growth.
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 include 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, Atradius N.V., Euler Hermes Aktiengesellschaft, Coface SA, CBL Insurance Limited, Credendo Group, Nexus Underwriting Management Limited, China Export & Credit Insurance Corporation (Sinosure), Sinosure, CNA Hardy
Europe was the largest region in the trade credit insurance market in 2024. 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.
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.
Trade Credit Insurance Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on trade credit insurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for trade credit insurance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The trade credit insurance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.