Global Trade Credit Insurance Market Report and Forecast 2024-2032

Global Trade Credit Insurance Market Size

The global trade credit insurance market value reached USD 12.03 billion in 2023. The market is expected to grow at a CAGR of 8.6% between 2024 and 2032, reaching almost USD 25.23 billion by 2032.

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Global Trade Credit Insurance Market Growth

Trade credit insurance protects against the risk of not being paid for goods or services, helping to manage the risks involved in buying and selling. It is purchased to reduce losses from insolvency, bankruptcy, or late payments, providing a safety net for manufacturers, traders, and service providers. This insurance is commonly provided to credit card users for a modest monthly fee on their outstanding balance, contributing to the trade credit insurance industry growth.

It is used in both domestic and international trade, offering coverage for entire transactions or specific deals. This insurance is commonly utilized across various industries such as food, IT, telecommunications, healthcare, energy, and automotive sectors.

Global Trade Credit Insurance Market Analysis

Trade credit insurance is adapting to address risks associated with the complexities of international trade, geopolitical tensions, and regulatory changes, all within the context of expanding and globalized supply chains. This evolution is driving demand in the trade credit insurance market.

By utilising advanced data analytics tools, insurers can conduct more precise risk assessments. This data-driven approach enhances the accuracy of underwriting, enables competitive pricing, and ensures comprehensive coverage.

Global Trade Credit Insurance Industry Outlook

According to the World Trade Organization, In Q4 2023, global trade in commercial services surged by 9% year-on-year, reflecting robust growth across key sectors. Goods-related services increased by 8%, and other commercial services grew by 9%. Regionally, the growth of the trade credit insurance market is expanding, with Asia spearheading this growth due to a 15% rise in imports, fuelled by increasing demand for commercial services. Europe followed with an 11% increase, highlighting substantial growth. Export growth varied across regions, with Asia leading at 11%, followed by Europe at 8%, and North America at 7%.

In Q4 2023, global merchandise trade volume increased by 0.3% quarter-on-quarter, marking a notable recovery from the 1.7% decline in Q4 2022. Regional import growth exhibited diverse trends, with Asia leading the way with a 2.0% increase, indicative of strong economic activity and demand. North America saw a 0.5% increase in imports, indicating stable trade dynamics according to the World Trade Organization, which is contributing to the growth of the trade credit insurance industry revenue.

As per the Government of India Department of Commerce, in April-May 2024, India’s total trade (merchandise and services) saw substantial growth. Exports increased to USD 133.61 billion, up from USD 122.35 billion in the same period in 2023, showcasing robust year-on-year growth. Merchandise exports rose to USD 73.12 billion from USD 69.57 billion, while merchandise imports climbed to USD 116.01 billion compared to USD 106.54 billion, indicating a solid increase in trade volume. Services exports experienced significant growth, reaching USD 60.49 billion, up from USD 52.77 billion. Imports in services rose to USD 33.91 billion from USD 29.84 billion, highlighting robust demand in the services sector and further driving the growth in trade credit insurance market revenue.

Protects against non-payment by customers, reducing financial risks for businesses.

• Facilitates trade expansion by offering reassurance to exporters and lenders.

• Policies can be tailored to meet specific industry needs, enhancing flexibility for businesses.

Premiums can be expensive, especially for comprehensive coverage, impacting affordability for smaller businesses.

• Policy terms and conditions may be intricate, requiring expertise to navigate effectively.

• Delays or disputes in claims settlements can strain relationships between insurers and policyholders.

Increasing global trade presents trade credit insurance market opportunities for insurers to expand into new geographic regions.

• Adoption of digital platforms can streamline operations and improve customer experience.

• Developing new insurance products tailored to evolving market needs, such as cyber insurance for trade transactions.

Recessionary periods can lead to higher default rates, increasing claims for insurers.

• Evolving regulatory landscapes globally may impact insurance operations and compliance costs.

• Intensifying competition from traditional insurers and new market entrants pressures margins and trade credit insurance market share.

Key Players in the Global Trade Credit Insurance Market and their Key Initiatives

American International Group, Inc.

• Introduced a digital platform for streamlined policy management. 

• Formed strategic partnerships with global trade organisations to meet the growing demand of the trade credit insurance market.  

Aon plc

• Launched a new trade credit insurance product tailored for e-commerce businesses. 

• Introduced AI-driven credit risk assessment tools. 

Atradius N.V.

• Expand its global presence with the acquisition of Pro Kolekt group. 

• Introduced a new credit insurance policy for SMEs to capture the trade credit insurance market opportunities. 

Zurich Insurance Company Ltd

• Introduced a blockchain-based platform for secure and transparent transactions. 

• Partnered with fintech firms to enhance credit risk assessment.

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Global Trade Credit Insurance Industry Segmentation

“Global Trade Credit Insurance Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Product

• Services

Market Breakup by Enterprise Size

• Large

• Small and Medium

Market Breakup by Coverages

• Whole Turnover Coverage

• Single Buyer Coverage

Market Breakup by Industry Vertical

• Food and Beverages

• IT and Telecom

• Metals and Mining

• Healthcare

• Energy and Utilities 

• Automotive

• Others

Market Breakup by Application

• Domestic 

• International

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

OVERALL TRADE (MERCHANDISE AND SERVICES), IN 2023, IN USD BILLION

Trade Credit Insurance Market Share

Trade credit insurance shields businesses from non-payment risks such as customer insolvency, ensuring stable cash flow, enhancing credit control, supporting international growth, and offering a competitive advantage through favourable credit terms, all of which contribute to increased trade credit insurance demand growth.

Services include expert risk assessment, streamlined claims handling, adaptable policies, market insights, and financial stability, enhancing operational efficiency and reducing financial uncertainties in global trade.

Leading Companies in the Trade Credit Insurance Market

The companies provide a diverse array of insurance options including property-casualty, life insurance, retirement products, and various financial services tailored for both commercial enterprises and individual clients.

• American International Group, Inc. 

• Aon plc 

• Atradius N.V. 

• Credendo 

• Allianz Trade 

• QBE Insurance Group Ltd 

• Zurich Insurance Company Ltd 

• Coface 

• Chubb Group Holdings Inc. 

• Great American Insurance Company 

• Others

Key Highlights of the Report

Trade Credit Insurance Market Report Snapshots

Trade Credit Insurance Market Size

Trade Credit Insurance Market Growth

Trade Credit Insurance Market Analysis

Trade Credit Insurance Market Share

Trade Credit Insurance Companies