Trade Credit Insurance Global Market Report 2024: A Projected $17.48 Billion Market in 2028, Registering a Compound Annual Growth Rate of 9.3%

DUBLIN, March 4, 2024 /PRNewswire/ — The “Trade Credit Insurance Global Market Report 2024” has been added to ResearchAndMarkets.com’s offering.

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.

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 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 market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:
• The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
• The impact of higher inflation in many countries and the resulting spike in interest rates.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Report Scope

Markets Covered:

• By Component: Product; Services
• By Coverages: Whole Turnover Coverage; Single Buyer Coverage
• By Application: Domestic; Exports
• By Industry Vertical: Food and Beverages; IT and Telecom; Metals and Mining; Healthcare; Energy and Utilities; Automotive; Other Industry Verticals

Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain

Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa

Time Series: Five years historic and ten years forecast

Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita

Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segment

Companies Profiled

• 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 Francaise d’Assurance pour le Commerce Exterieur (Coface)
• CBL Insurance Limited
• Credendo Group
• Nexus Underwriting Management Limited
• Elevate Insurance
• China Export & Credit Insurance Corporation
• Sinosure
• CNA Hardy

For more information about this report visit https://www.researchandmarkets.com/r/vuqody

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