Global Credit Insurance Market Overview:
Credit Insurance Market Size was estimated at 12.3 (USD Billion) in 2022. The Credit Insurance Market Industry is expected to grow from 14.5 (USD Billion) in 2023 to 32.4 (USD Billion) by 2032. The Credit Insurance Market CAGR (growth rate) is expected to be around 12.1% during the forecast period (2024 - 2032).
Key Credit Insurance Market Trends Highlighted
Key drivers propelling the growth of the credit insurance market include the increasing volume of global trade, rising trade protectionism, and the growing awareness of the risks associated with credit default. Companies are realizing the importance of protecting their accounts receivable from non-payment, as evidenced by the growing adoption of credit insurance policies. Emerging opportunities within the credit insurance market lie in the expansion into new markets, particularly in developing countries where demand for credit insurance is expected to surge. Additionally, the development of innovative products, such as tailored policies and digital distribution channels, is creating new avenues for growth. Recent market trends reflect the increasing sophistication of credit insurance offerings. Insurers are leveraging technology to enhance risk assessment and provide customized solutions to meet the evolving needs of businesses. The integration of data analytics and artificial intelligence is enabling insurers to assess creditworthiness more accurately, leading to better underwriting decisions and tailored pricing. Furthermore, the adoption of digital platforms is streamlining the application and claims processes, making credit insurance more accessible and efficient.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Credit Insurance Market Drivers
Increasing Demand for Trade Finance
The popularity and number of international transactions are continuously growing at a steady pace. However, one of the essential instruments for conducting this type of activity is credit insurance. Credit insurance ensures that the business obtains the proper protection from both exporter and importer risks and adequately ensures that the customer will make the desired payment. The trade finance demand is supported by multiple factors that will encourage its growth, one of them being the outward-oriented development of new measures.
Heightened Risk of Non-Payment
Given the economic consequences of the COVID-19 pandemic, the chances of business’ non-payment have increased. Nowadays, numerous enterprises experience financial problems associated with the recession in their countries and even their bankruptcy. Therefore, credit insurance becomes an even more substantial instrument for firms that wish to avoid bad debts being an issue for them. In the context of the transition of the global economy to the post-pandemic period, the risk of non-payment is viewed as one of the factors shaping the demand for credit insurance.
Growing Awareness of Credit Insurance
Credit insurance has become increasingly demanded by businesses lately, especially in emerging countries. The more businesses learn about the advantages of using credit insurance as a tool for protection against bad debts, as well as for the enhancement of the liquidity ratio to the level stipulated by the pre-agreed limit, the more they are likely to use this financial instrument. The increasing awareness of the target audiences is bound to raise the demand for this service over the course of the next few years.
Credit Insurance Market Segment Insights:
Credit Insurance Market Insurance Type Insights
The Credit Insurance Market is segmented by Insurance Type into Domestic Credit Insurance and Export Credit Insurance. Domestic Credit Insurance protects businesses against the risk of non-payment from domestic customers. It covers both trade credit insurance and political risk insurance. Trade credit insurance protects businesses against the risk of non-payment from customers within the same country. Political risk insurance protects businesses against the risk of non-payment from customers in countries with political instability or economic problems. The global domestic credit insurance market is expected to grow from USD 1.2 billion in 2023 to USD 2.1 billion by 2032, at a CAGR of 7.1%. The growth of the market is driven by the increasing demand for credit insurance from businesses of all sizes. Small and medium-sized businesses are particularly vulnerable to the risk of non-payment, and credit insurance can help them protect their cash flow and avoid financial distress.
Export Credit Insurance Export Credit Insurance protects businesses against the risk of non-payment from foreign customers. It covers both commercial risk insurance and political risk insurance. Commercial risk insurance protects businesses against the risk of non-payment from customers in countries with a high risk of commercial insolvency. Political risk insurance protects businesses against the risk of non-payment from customers in countries with political instability or economic problems. The global export credit insurance market is expected to grow from USD 1.5 billion in 2023 to USD 2.7 billion by 2032, at a CAGR of 8.5%. The growth of the market is driven by the increasing volume of global trade and the increasing demand for credit insurance from businesses of all sizes. Export credit insurance can help businesses to expand into new markets and to mitigate the risk of non-payment from foreign customers.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Credit Insurance Market Industry Insights
The construction industry held the largest share of the Credit Insurance Market in 2023, accounting for 28.5% of the total market revenue. This dominance is attributed to the high exposure to credit risk in the construction sector, where projects often involve long payment cycles and complex supply chains. The manufacturing industry is expected to witness significant growth over the forecast period, owing to the increasing demand for credit insurance from manufacturers to mitigate risks associated with international trade and supply chain disruptions. The wholesale trade industry is also projected to grow at a steady pace, driven by the rising adoption of credit insurance by wholesalers to protect their receivables from non-payment risks. The retail trade industry has a moderate share of the market and is expected to grow steadily, supported by the increasing use of credit insurance by retailers to manage credit risk and improve cash flow. The professional services industry has a relatively smaller share of the market but is expected to grow at a faster pace, driven by the increasing demand for credit insurance from professional service providers to protect their fees from non-payment risks.
Credit Insurance Market Size of Business Insights
The Credit Insurance Market is segmented by Size of Business into Small Businesses, Mid-sized Businesses, and Large Businesses. Among these segments, Small Businesses are expected to hold the largest market share during the forecast period. Small businesses are more likely to experience cash flow problems and are more vulnerable to bad debts, making credit insurance a valuable tool for them. Mid-sized Businesses are also expected to witness significant growth in the market, owing to their increasing awareness of the benefits of credit insurance. Large Businesses, on the other hand, are expected to have a moderate growth rate in the market as they have more resources and are better able to manage their credit risks.
Credit Insurance Market Premium Type Insights
The Credit Insurance Market is segmented by premium type into single premium, annual premium, and multiyear premium. The single premium segment is expected to hold the largest market share in 2023 due to its flexibility and cost-effectiveness. The annual premium segment is expected to grow at the highest CAGR during the forecast period due to the increasing demand for short-term credit insurance policies. The multiyear premium segment is expected to account for a significant market share by 2032 due to the benefits of long-term coverage and lower premiums. Overall, the Credit Insurance Market is expected to grow significantly over the forecast period due to the increasing demand for credit insurance products and services.
Credit Insurance Market Regional Insights
The regional landscape of the Credit Insurance Market exhibits distinct growth dynamics across key regions, including North America, Europe, APAC, South America, and MEA. North America is expected to hold a significant market share, driven by the presence of established players and a robust financial sector. Europe is projected to witness steady growth, supported by government initiatives and a growing demand for credit insurance solutions. APAC is anticipated to emerge as a high-growth region fueled by the rapid expansion of trade and investment activities. South America and MEA are expected to experience moderate growth, with increasing demand for credit insurance in emerging economies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Credit Insurance Market Key Players And Competitive Insights:
Major players in the credit insurance market are continuously introducing new products and services to cater to the changing needs of customers. Leading Credit Insurance Market players are also focusing on expanding their geographic reach by entering new markets. The credit insurance market is being driven by the increasing demand for credit insurance by businesses of all sizes. The Credit Insurance Market Competitive Landscape is expected to remain competitive in the coming years, with new entrants and existing players expected to continue to invest in innovation and expansion. Allianz Trade is a leading provider of credit insurance and other trade credit risk management solutions. The company has a global presence and offers a wide range of products and services to businesses of all sizes. Allianz Trade has a strong track record of innovation and has been a pioneer in the development of new credit insurance products and services. The company is also a leading provider of credit insurance in emerging markets. Euler Hermes is another leading provider of credit insurance and other trade credit risk management solutions. The company has a global presence and offers a wide range of products and services to businesses of all sizes. Euler Hermes has a strong track record of innovation and has been a pioneer in the development of new credit insurance products and services. The company is also a leading provider of credit insurance in emerging markets.
Key Companies in the Credit Insurance Market Include:
Credit Insurance Industry Developments
The Credit Insurance Market is projected to grow at a CAGR of 12.12% from 2024 to 2032, reaching a value of USD 7.57 billion by 2032. The market is driven by increasing awareness of credit risks, rising trade volumes, and growing demand for credit protection from businesses. Recent developments in the credit insurance market include the launch of new products and services by insurers, such as parametric credit insurance and supply chain credit insurance. Insurers are also investing in technology to improve their underwriting capabilities and claims processing. Current affairs in the credit insurance market include the impact of the COVID-19 pandemic on businesses and the resulting increase in demand for credit insurance. The conflict between Russia and Ukraine is also having an impact on the market, as it is causing disruptions to global trade and increasing the risk of credit defaults.
Credit Insurance Market Segmentation Insight
Credit Insurance Market Insurance Type Outlook
Credit Insurance Market Industry Outlook
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Manufacturing
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Construction
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Wholesale Trade
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Retail Trade
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Professional Services
Credit Insurance Market Size of Business Outlook
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Small Businesses
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Mid-sized Businesses
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Large Businesses
Credit Insurance Market Premium Type Outlook
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Single Premium
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Annual Premium
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Multiyear Premium
Credit Insurance Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
Credit Insurance Market Report Scope
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Report Attribute/Metric
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Details
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Market Size 2022
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12.3(USD Billion)
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Market Size 2023
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14.5(USD Billion)
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Market Size 2032
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32.4(USD Billion)
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Compound Annual Growth Rate (CAGR)
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12.1% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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HDI Global SE, Beazley, Zurich Insurance Group, Euler Hermes, Natixis Assurances, Allianz Trade, Berkshire Hathaway Specialty Insurance, Sompo Japan Nipponkoa Insurance, AIG, Liberty Mutual Insurance, Atradius, Coface, Chubb, QBE Insurance, XL Catlin
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Segments Covered
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Insurance Type, Industry, Size of Business, Premium Type, Regional
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Key Market Opportunities
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Growing demand for trade credit insuranceIncreasing awareness of credit risksRise of e-commerce and cross-border tradeEnhanced risk management strategiesGovernment initiatives to support businesses
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Key Market Dynamics
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Growing global tradeIncreasing trade receivablesHeightened trade risksGrowing adoption of technologyRegulatory changes
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Credit Insurance Market is expected to reach USD 32.4 billion by 2032, exhibiting a CAGR of 12.1% during the forecast period 2024-2032.
The Asia Pacific region is expected to witness the fastest growth during the forecast period due to increasing trade activities and rising awareness about credit insurance products. North America and Europe are also significant markets for credit insurance.
Credit insurance is used in various sectors, including manufacturing, trading, services, and construction. It protects businesses from the risk of non-payment by customers.
Some of the leading players in the Credit Insurance Market include Allianz Trade, Coface, Euler Hermes, AIG, and Atradius.
The rising demand for credit insurance due to increasing global trade, globalization of supply chains, and growing awareness of credit risks are key factors driving the growth of the market.
The market faces challenges such as intense competition, regulatory changes, and economic downturns that can impact the demand for credit insurance.
Digitalization and technological advancements are emerging trends in the market, leading to the development of online platforms and data-driven solutions for credit insurance.
The COVID-19 pandemic had a significant impact on the market, causing a decline in demand for credit insurance due to disruptions in global trade and economic uncertainty.
Expansion into emerging markets, development of innovative products, and collaborations with fintech companies present growth opportunities for players in the credit insurance market.
When choosing a credit insurance provider, factors such as financial strength, industry expertise, range of products, and customer service should be considered.
