Trade Credit Insurance Market Size

Trade Credit Insurance Market Size

Trade Credit Insurance Market size was valued at 9.2 billion in 2022 and is estimated to register a CAGR of 10.2% between 2023 and 2032. The expansion of trade globally has created a demand for trade credit insurance to reduce the risk of non-payment from foreign buyers, contributing to the trade credit insurance industry share. The increased uncertainty in global trade and protectionism will drive the demand for trade credit insurance. Furthermore, these insurers provide data to their insured companies about the businesses they want to work with, thus helping them identify payment difficulties and allowing insured companies to operate their businesses with greater confidence.

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Trade credit insurance, also known as credit insurance or export credit insurance, is a type of insurance coverage that protects businesses from the risk of non-payment by their customers or debtors. It provides financial protection to businesses that sell goods or services on credit terms, safeguarding their trade receivables and reducing the risk of potential losses due to customer insolvencies, protracted defaults, or political & economic events.

During economic downturns or recessions, businesses may experience financial difficulties, increasing the risk of payment defaults and insolvencies. These challenging economic conditions can lead to an elevated number of claims in the trade credit insurance market, impacting the insurer’s profitability and potentially leading to premium increase. Furthermore, changing global trade dynamics, geopolitical tensions, or trade disputes can also disrupt international trade flows and impact the creditworthiness of businesses. Uncertainty in trade relationships or the imposition of trade barriers can introduce additional risks, posing challenges for insurers to accurately assess and price policies.