Trade Credit Insurance Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, by Enterprise Size, by Coverage, by Industry Vertical, by Application : Global Opportunity Analysis and Industry Forecast, 2024-2032

Key market dynamics 

The notable factors positively affecting the trade credit insurance market growth include rise in focus toward protecting & mitigating risk and expansion of trade in different regions. However, lack of awareness of credit insurance across the globe and varied & conflicting trade regulations across different jurisdictions are projected to hinder the trade credit insurance market growth. Furthermore, surge in small & medium-sized enterprises expanding their businesses offers lucrative trade credit insurance market opportunities for the trade credit insurance market players. 

In addition, developing economies offer significant opportunities for credit insurance solution providers to expand & develop their offerings, especially among emerging economies such as Australia, China, India, Singapore, and South Korea.  

Risk Exposure to Trade Credit Insurance Solutions

According to the report published by the European Systemic Risk Board, when sellers provide trade credit, they incur the risk that buyers will not pay their invoices. There are, in general, three alternative ways in which firms can deal with this credit risk. First, sellers can avoid any trade credit risk by requiring advance payment. Second, sellers can bear the trade credit risk. Third, sellers can seek cover for trade credit risk. There are material differences between international and domestic trade. In international trade, insurers cover 60% of trade credit risk, banks cover 20% and sellers retain 20% of the risk. By contrast, for domestic trade, sellers retain 85% of the risk. It is likely that the greater relevance of TCI for international trade reflects a different monitoring capacity and a reduced ability to recover repayments. These factors are further expected to fuel the growth of the global trade credit insurance market. 

FIGURE 1: Ultimate risk exposure to trade credit in terms of total trade receivables (%)  

Market Segmentation 

The trade credit insurance market share is segmented into component, enterprise size, coverage, industry vertical, application and region. On the basis of component, the trade credit insurance market is divided into product and services. On the basis of enterprise size, the market is segregated into large enterprises and small and medium-sized enterprises. On the basis of coverage, the market is divided into whole turnover coverage and single buyer coverage. On the basis of industry vertical, the trade credit insurance market is segregated into food and beverages, IT and telecom, metals and mining, healthcare, energy and utilities, automotive and others. On the basis of application, the market is bifurcated into domestic and international. Region wise, the trade credit insurance market outlook is analyzed across North America, Europe, Asia-Pacific, Latin America and Middle East and Africa. 

Regional/Country Market Outlook 

In the U.S., trade credit insurance (TCI) plays a significant role in helping businesses manage the risk of non-payment from domestic and international customers. U.S. businesses use trade credit insurance to protect against the risk of non-payment by buyers. This is especially critical for companies involved in exporting, where international transactions can be subject to additional risks such as political instability and currency fluctuations. Moreover, trade credit insurance in the UK is an essential financial tool for businesses of all sizes, providing protection against the risk of non-payment from domestic and international buyers. In addition, NEXI is a government-affiliated insurance provider that offers trade and investment insurance to support Japanese businesses engaged in international trade. NEXI (Nippon Export and Investment Insurance) covers risks such as buyer insolvency and political risks in foreign markets. 

• In March 2024, China initiated an extensive campaign to curb the aggressive tactics employed by its insurance sector. This government initiative primarily targeted insurers linked with private conglomerates, which used their extensive finance sector connections to embark on high-risk growth strategies. 

• In March 2024, the U.S. Department of the Treasury’s Federal Trade credit insurance Office (FIO) advanced its efforts to collect insurance data to better understand the impacts of climate-related financial risks on the sector, by launching a first-of-its kind collaboration with state insurance regulators anda the National Association of Insurance Commissioners (NAIC) .

• In August 2022, the Government of Canada created the task force on flood insurance and relocation with the mandate to explore solutions for low-cost flood insurance for residents of high-risk areas and consider strategic relocation in areas at the highest risk of recurrent flooding. This interdisciplinary taskforce brought together experts from across the country in both the public and private sectors.   

Industry Trends: 

• In May 2024, Trade credit insurance Bureau of Canada (IBC) launched new policies that governments can adopt to help stabilize insurance premiums for businesses and reduce cost pressures within the commercial market. 

• In May 2023, the U.S. insurance industry reported an investment exposure to debt issued by the Treasury Department of $303.87 billion at year-end 2022.  

• In December 2023, Export credit agencies, in partnership with the Innovation and Knowledge Hub at the University of Oxford. The UN Environment Program Finance Initiative (UNEP FI) launched the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) , the first net-zero alliance comprising public finance institutions globally. 

Competitive Landscape 

The major players operating in the trade credit insurance market include American International Group Inc., Aon plc, Atradius N.V., Coface, Credendo, EULER HERMES, Export Development Canada, QBE Insurance (Australia) Ltd., SINOSURE, and Zurich. 

Recent Key Strategies and Developments 

• In April 2024, Allianz Trade launched an enhanced trade credit insurance product suite in the UK and Ireland. The product will feature a range of enhancements to existing provisions, such as fully retrospective cover for approved buyer risks. 

• In August 2023, Logistics platform Flexport introduced its second insurance product – trade credit insurance. The product is available for U.S.-based clients and the companies are working on integrating the offering into the Flexport platform based on information we received. 

• In December 2023, Everest Trade credit insurance launched a fixed indemnity trade credit insurance product. As a way to grow its accident and health portfolio, the Group Fixed Indemnity Trade credit insurance will be geared toward companies and association groups that are looking for non-ACA health trade credit insurance. 

• In November 2021, Atradius expanded its single transaction cover solution to over 130 buyer countries, targeting an emerging industry of digital B2B platforms. The digital credit insurance solution of Atradius is now also commercialized to other B2B marketplaces outside the chemicals sectors. 

Key Sources Referred 

1. International Credit Insurance & Surety Association.  

2. Association of British Insurers 

3. Export credit insurance 

4. Insurance Regulatory and Development Authority of India.  

5. Allianz Trade 

Key Benefits for Stakeholders 

• This report provides a quantitative analysis of the trade credit insurance industry segments, current trends, estimations, and dynamics of the trade credit insurance market analysis from 2024 to 2032 to identify the prevailing trade credit insurance market opportunity. 

• The trade credit insurance market research is offered along with information related to key drivers, restraints, and opportunities. 

• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network. 

• In-depth analysis of the trade credit insurance segmentation assists to determine the prevailing market opportunities. 

• Major countries in each region are mapped according to their revenue contribution to the global trade credit insurance market statistics. 

• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players. 

• The report includes the analysis of the regional as well as global trade credit insurance market trends, key players, market segments, application areas, and trade credit insurance market growth strategies.