The trade credit insurance market has demonstrated strong growth, rising from $11.22 billion in 2023 to $12.26 billion in 2024, at a compound annual growth rate (CAGR) of 9.2%. This growth is due to global economic uncertainty, market expansion, international trade growth, risk mitigation for SMEs, regulatory compliance, and improved access to financing and credit terms. The market is projected to reach $17.48 billion by 2028, reflecting a CAGR of 9.3%. Growth drivers include global trade volatility, increased focus on supply chain resilience, digitalization of trade finance, emergence of new market entrants, and strategic risk management. Major trends include blockchain technology for enhanced security, demand for non-cancellable policies, risk mitigation for supply chain disruptions, evolving regulations, and parametric insurance solutions.
Major Driver In The Trade Credit Insurance Market
The trade credit insurance market is poised for growth, fueled by a surge in the global import and export of goods and services. Trade credit insurance serves to protect trading companies' receivables from credit concerns amid increased global trade. According to a report by the United Nations Conference on Trade and Development (UNCTAD), world trade reached a record $28.5 trillion in 2021, marking a 25% increase over 2020 and a 13% increase over 2019. The demand for trade credit insurance is rising in tandem with the surge in global import and export activities, resulting in market sizes of $D billion in 2023, $E billion in 2024, and an expected $F billion in 2028.
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Trade Credit Insurance Market Competitive Landscape
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 Française d'Assurance pour le Commerce Extérieur (Coface), CBL Insurance Limited, Credendo Group, Nexus Underwriting Management Limited, Elevate Insurance, China Export & Credit Insurance Corporation, Sinosure, CNA Hardy
Key Trade Credit Insurance Market Trend
Technology advancements have emerged as a key trend gaining popularity in the trade credit insurance market. Major companies operating in the trade credit insurance market are focused on developing new technological solutions to strengthen their position in the market. For instance, in October 2021, LiquidX, a US-based provider of financial technology solutions, launched its InBlock Digital Policy Management pilot for trade credit insurance. With the aid of Distributed Ledger Technology (DLT), smart contracts, and artificial intelligence (AI), this solution automates crucial policy administration and compliance procedures while also integrating trade credit insurance policies into financial workflows for the first time. In order to build a solution that automates the management of multi-buyer and single-buyer insurance programs while maximizing the efficacy and user experience of this innovative technology, LiquidX teamed with a financial institution and a business.
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Trade Credit Insurance Market Segmentation
The trade credit insurance market covered in this report is segmented –
1) By Component: Product, Services
2) By Coverages: Whole Turnover Coverage, Single Buyer Coverage
3) By Application: Domestic, Exports
4) By Industry Vertical: Food and Beverages, IT and Telecom, Metals and Mining, Healthcare, Energy and Utilities, Automotive, Other Industry Verticals
By Geography:The regions 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.
Europe was the largest region in the trade credit insurance market in 2023.
The Trade Credit Insurance Global Market Report 2024 furnishes information about the global trade credit insurance market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
