What is the Historic and Current Scenario of the Trade Credit Insurance Market?
The trade credit insurance market has seen considerable growth due to a variety of factors.
• The market size of trade credit insurance has seen robust growth in the past few years. It is projected to increase from $12.21 billion in 2024 to $13.34 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.3%.
Factors contributing to the growth during the historic period include the volatility of the global economy, expansion of the market, growth in international commerce, risk reduction for small and medium businesses (SMEs), adherence to regulatory requirements, and better financing and credit terms.
What Is The Projected Growth Of The Trade Credit Insurance Market?
The trade credit insurance market is expected to maintain its strong growth trajectory in upcoming years.
• Forecast predictions indicate vigorous expansion for the trade credit insurance market in the upcoming years, with its size projected to reach $19.25 billion by 2029. This comes with a compound annual growth rate (CAGR) of 9.6%.
The growth, expected during this forecast period, owes its impetus to factors such as fluctuations in global trade, accentuated attention to supply chain robustness, digitization of trade finance, the arrival of newer players in the market, and strategic risk management in the wake of a post-pandemic scenario. Notable trends likely to be observed during this period range from utilising blockchain technology for amplified security to a surge in demand for non-cancellable policies, embedding strategies to mitigate risk in supply chain disruptions, an alterable regulatory framework, and the acceptance of parametric insurance solutions.
What Are The Leading Drivers Of Growth In The Trade Credit Insurance Market?
The anticipated boom in worldwide imports and exports of goods and services is predicted to stimulate the expansion of the trade credit insurance market. Exportation means the selling of products and services to overseas countries, while importation involves procurement of goods and services from foreign entities for domestic use. Trade credit insurance is utilized to protect the receivables of trading companies from credit-related issues. Trade credit serves as an instrument for manufacturers, importers, and exporters to streamline financial transactions, thereby augmenting the need for trade credit insurance. As per the World Trade Organization, a global governing body based in Switzerland, the international trade in goods is expected to escalate by 2.7% in October 2024, a slight increase compared to the earlier prediction of 2.6%, as per the updated forecast by WTO economists on October 10. The volume of global merchandise trade is forecasted to augment by 3.0% in 2025. Consequently, the predicted rise in international import and export of goods and services is fuelling the trade credit insurance market's expansion.
What Are The Principal Market Segments In The Global Trade Credit Insurance Healthcare Industry?
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
Subsegments:
1) By Product: Whole Turnover Insurance, Single Buyer Insurance, Political Risk Insurance, Export Credit Insurance
2) By Services: Risk Assessment Services, Claims Management Services, Debt Collection Services, Consulting And Advisory Services
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Which Emerging Market Trends Are Altering The Trade Credit Insurance Market?
The rise in technological advancements is becoming a pivotal trend in the trade credit insurance market. Leading companies in this domain are aiming to establish their market foothold by introducing novel technology-based solutions. As an illustrative example, Allianz Trade, a trade credit insurance firm from France, introduced a next-generation trade credit insurance product in April 2024, which is a B2B insurance product devised to guard against the non-payment risks of trade receivables. This product is initiated when a client fails to fulfill the payment conditions of a pre-agreed contract. The product also boasts features like expanded product offerings with retrospective coverage, CEND, and delayed effect coverage, enhanced user-friendliness with simplified documentation and online accessibility, and increased prospects for global expansion.
Who Are the Key Players in the Trade Credit Insurance Market?
Major companies operating in the trade credit insurance market include:
• 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
• Atradius N.V.
• Euler Hermes Aktiengesellschaft
• Coface SA
• CBL Insurance Limited
• Credendo Group
• Nexus Underwriting Management Limited
• China Export & Credit Insurance Corporation (Sinosure)
• Sinosure
• CNA Hardy
What are the Regional Insights into the Trade Credit Insurance Market?
Europe was the largest region in the trade credit insurance market in 2024. 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.
