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

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.