Global Trade Credit Insurance Market Overview
Trade Credit Insurance Market Size was estimated at 12.35 (USD Billion) in 2022. The Trade Credit Insurance Industry is expected to grow from 12.87 (USD Billion) in 2023 to 18.7 (USD Billion) by 2032. The Trade Credit Insurance Market CAGR (growth rate) is expected to be around 4.24% during the forecast period (2024 - 2032).
Key Trade Credit Insurance Market Trends Highlighted
The trade credit insurance market is expected to witness significant growth due to rising ization, a surge in trade, and the increasing complexity of supply chains. The growing interconnectedness of economies has heightened the risk of payment defaults, prompting businesses to seek trade credit insurance to protect against potential losses. Additionally, the ongoing COVID-19 pandemic and geopolitical uncertainties have further highlighted the need for risk mitigation in international trade.
Key market drivers include the expansion of emerging markets, increased demand for cross-border trade, and the adoption of digital technologies in trade finance. Opportunities for growth can be found in offering tailored solutions for specific industries, expanding into underserved markets, and developing innovative products that address evolving risks. Recent trends include the rise of parametric insurance, which provides coverage based on predetermined triggers rather than actual losses, and the integration of trade credit insurance with supply chain financing platforms.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Trade Credit Insurance Market Drivers
Increasing Trade
The growing trade drives the increasing demand for the Trade Credit Insurance Market Industry. As businesses expand their activities to new markets, they are at risk of their customers failing to pay them for the goods. Trade credit insurance allows businesses to protect their interests and not worry about potential losses due to customer defaults. The upward trend in trade is forecasted to grow further in the upcoming years, subsequently increasing the demand for this type of insurance.
Rising Credit Risks
The increasing number of business failures is another major driver of the growth of the Trade Credit Insurance Market. In today's competitive business environment, businesses are facing increasing pressure to reduce costs and improve efficiency. This can lead to businesses taking on more risk, which can increase the likelihood of a default. Trade credit insurance can help businesses manage their credit risk and protect themselves against the financial consequences of a customer default.
Increased Awareness of Trade Credit Insurance
Another factor that will result in the growth of the Trade Credit Insurance Market is the rising awareness of trade credit insurance among the business community. Companies are more conscious of the benefits provided by insurance and are more aware of using it to safeguard themselves from the risk of non-payment. The same trend will persist in the years to come, and the demand for trade credit insurance will grow.
Trade Credit Insurance Market Segment Insights
Trade Credit Insurance Market Policy Type Coverage Insights
The Trade Credit Insurance Market is segmented by Policy Type Coverage into Single-Risk Policies and Multi-Risk Policies. Single-Risk Policies provide protection against the risk of non-payment by a single customer, whereas Multi-Risk Policies provide coverage against the risk of non-payment by multiple customers. The single-risk policies segment dominates the trade credit insurance market revenue, which is attributable to their lower cost in comparison to multi-risk policies and tailored protection of businesses. Nevertheless, multi-risk policies are expected to experience higher CAGR over the following ten years, as they offer a higher protection level and, given their cost-effectiveness for businesses with a large number of customers.
Overall, the trade credit insurance market is expected to expand in the future due to the increasing trade ization, the rising number of trade disputes, and the growing complexity of the economy. The market is also driven by businesses' increasing awareness of the importance of trade credit insurance. The trade credit insurance market is a highly competitive market dominated by key participants, such as and. All players offer a wide variety of trade credit insurance products and services at varying levels of risk, condition, maturity, and cost, and they have a strong presence in the major markets.
The anticipated CAGR of the trade credit insurance market is equal to 4.5% for the next ten years, driven by the same enabling factors as today, such as the rising number of trade disputes and the increasing trade ization and complicatedness, as well as the growing importance of trade credit insurance among businesses.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Trade Credit Insurance Market Business Type Insights
The Trade Credit Insurance Market segmentation by Business Type comprises Domestic Trade, Export Trade, and Cross-Border Trade. The Domestic Trade segment held the largest market share in 2023, representing 45% of the Trade Credit Insurance Market revenue. At the same time, the Export Trade segment is projected to demonstrate the highest CAGR of 5% during the forecasted period 2023-2032. The increased demand for trade credit insurance from exporters to protect themselves against the risk of non-payment from foreign buyers will result in the growth of the Export Trade segment.
While the Cross-Border Trade segment is prescribed to experience rather substantial growth, and this tendency can be explained by the rising volume of the cross-border trade.
Trade Credit Insurance Market Policy Scope Insights
Policy Scope Segment Insights The Policy Scope segment in the Trade Credit Insurance Market is categorized into Whole-Turnover Policies and Selected-Debtor Policies. Whole-turnover policies offer comprehensive coverage for all eligible accounts receivable, providing businesses with a wider safety net against potential losses. Selected-Debtor Policies, on the other hand, are tailored to cover specific customers or groups of customers, allowing businesses to manage their risk exposure more selectively. In 2023, the Whole-Turnover Policies segment accounted for approximately 65% of the Trade Credit Insurance Market revenue, with a projected growth rate of 4.5% CAGR over the forecast period.
This segment offers comprehensive protection, making it a preferred choice for businesses seeking to safeguard their entire accounts receivable portfolio. Selected-Debtor Policies are expected to grow at a slightly faster rate of 4.7% CAGR during the same period, driven by the increasing demand for tailored risk management solutions. This segment allows businesses to focus their coverage on high-value customers or specific regions, providing flexibility and cost-effectiveness. Overall, the Policy Scope segment offers diverse options for businesses seeking to mitigate their trade credit risks.
The choice of policy type depends on factors such as business size, industry, and risk appetite.
Trade Credit Insurance Market Premium Type Insights
The Trade Credit Insurance Market segmentation by Premium Type includes Fixed Premiums and Flexible Premiums. Fixed Premiums accounted for the larger share of the market in 2023 and are projected to continue to hold a significant share through 2032. This is because fixed premiums offer a more stable and predictable cost structure for businesses. Flexible Premiums, on the other hand, are becoming increasingly popular as they offer businesses more flexibility in managing their insurance costs. The Trade Credit Insurance Market revenue from Flexible Premiums is expected to grow at a faster rate than that of Fixed Premiums over the forecast period.
This is due to the increasing demand for tailored insurance solutions that can meet the specific needs of businesses.
Trade Credit Insurance Market Regional Insights
The regional segmentation of the Trade Credit Insurance Market offers valuable insights into the market dynamics across different geographic regions. North America, Europe, APAC, South America, and MEA represent the key regional segments. North America held the largest market share in 2023, owing to factors such as the presence of established insurance companies, high trade volumes, and government initiatives to support trade. Europe is another significant region, driven by the presence of key insurance hubs and a strong manufacturing sector.
APAC is projected to witness the highest growth rate during the forecast period, primarily due to the rising trade activities and increasing demand for credit insurance in emerging economies like China and India. South America and MEA also present growth opportunities, with increasing demand from sectors such as agriculture, energy, and infrastructure. Regional segmentation provides businesses with a comprehensive understanding of market dynamics, enabling them to tailor their strategies to specific regional requirements and capitalize on growth opportunities.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Trade Credit Insurance Market Key Players And Competitive Insights
The major players in the industry are trying to gain a competitive advantage with the help of innovative products and services, extending the geographic scope of their operations, and forming strategic alliances. For example, in 2021, Atradius formed a partnership with the Export-Import Bank of Thailand for the provision of support to Thai exporters. The leading market participants are also attempting to improve their underwriting and claims processing procedures with the help of investments in the development of technology.
The approach allows them to minimize their costs while improving the level of efficiency. The Trade Credit Insurance Market is expected to expand significantly in the course of the next few years with the development of other markets, the expanding volume of international trade, and the growing level of awareness of the advantages that the use of this type of product is able to offer.
Euler Hermes is one of the leading providers of the services under analysis. The company is known for having offices in over 50 countries. The company offers a broad range of services, including single-buyer and multi-buyer policies. It also has a variety of products and services on offer, such as specific and general coverage, short-term, transactional coverage, and political risk insurance. Some of the added-value services provided by the company include but are not limited to credit assessment and collections. The company is financially viable with a solid history of success.
Coface is another prominent player with a solid history, extensive reach, a wide range of services, and a high level of viability. The company is present in over 100 countries. The company and its affiliates operate primarily in Western Europe and North America and have offices in every major city around the world. The company also has a wide range of products including single-buyer and multi-buyer policies and added-value services.
Key Companies in the Trade Credit Insurance Market Include
- AIG
- Hiscox
- Chubb
- Allianz Trade
- Tokio Marine HCC
- Generali Corporate Commercial
- Atradius
- Coface
- Euler Hermes
- Mapfre
- Liberty Mutual Insurance
- HDI SE
- QBE Insurance
- AXA XL
- Zurich Credit Insurance
Trade Credit Insurance Industry Developments
The trade credit insurance market is expected to reach USD 18.7 billion by 2032, exhibiting a CAGR of 4.24% during the forecast period (2024-2032). The market growth is attributed to the increasing demand for trade credit insurance policies, particularly in emerging economies. The COVID-19 pandemic has highlighted the importance of trade credit insurance as businesses seek to protect themselves against the risk of non-payment.
The insurance industry is also witnessing a shift towards digital technologies, which is expected to streamline the underwriting process and reduce costs. Key market players are focusing on expanding their geographical presence and offering customized solutions to meet the diverse needs of businesses.
Trade Credit Insurance Market Segmentation Insights
Trade Credit Insurance Market Policy Type Coverage Outlook
- Single-Risk Policies
- Multi-Risk Policies
Trade Credit Insurance Market Business Type Outlook
- Domestic Trade
- Export Trade
- Cross-Border Trade
Trade Credit Insurance Market Policy Scope Outlook
- Whole-Turnover Policies
- Selected-Debtor Policies
Trade Credit Insurance Market Premium Type Outlook
- Fixed Premiums
- Flexible Premiums
Trade Credit Insurance Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
12.35 (USD Billion) |
| Market Size 2023 |
12.87 (USD Billion) |
| Market Size 2032 |
18.7 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.24% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
AIG, Hiscox, Chubb, Allianz Trade, Tokio Marine HCC, Generali  Corporate Commercial, Atradius, Coface, Euler Hermes, Mapfre, Liberty Mutual Insurance, HDI  SE, QBE Insurance, AXA XL, Zurich Credit Insurance |
| Segments Covered |
Policy Type Coverage, Business Type, Policy Scope, Premium Type, Regional |
| Key Market Opportunities |
Key Market Opportunities in the Trade Credit Insurance Market, Rising  Trade Increased trade volume creates demand for protection against credit risks, Ecommerce Growth Online transactions drive demand for trade credit insurance due to higher potential for fraud and defaults, Supply Chain Disruptions Unpredictable disruptions highlight the need for insurers to provide stability and mitigate trade risks, Emerging Markets Economic expansion in developing countries creates opportunities for trade credit insurance providers, Digitalization and Innovation Advancements in technology enable insurers to offer customized and efficient solutions |
| Key Market Dynamics |
Growing trade receivables. Increasing insolvencies. Expansion of emerging markets. Digitalization and data analytics. Growing regulatory compliance. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Trade Credit Insurance Market is expected to reach a valuation of USD 12.87 billion in 2023 and is projected to grow at a CAGR of 4.24% to reach USD 18.7 billion by 2032.
North America, Europe, Asia-Pacific, and the Rest of the World are the major regions contributing to the growth of the Trade Credit Insurance Market. Among these, the Asia-Pacific region is anticipated to grow at the highest CAGR during the forecast period due to the increasing demand for trade credit insurance in emerging economies such as China and India.
Trade credit insurance is primarily used to protect businesses from the risk of their customers' non-payment. It covers a wide range of applications, including domestic trade, international trade, and supply chain finance.
Euler Hermes, Atradius, Coface, Zurich, and AXA are some of the leading players in the Trade Credit Insurance Market.
The increasing ization of trade, rising trade receivables, and growing awareness of the benefits of trade credit insurance are the key factors driving the growth of the Trade Credit Insurance Market.
Economic downturns, political instability, and fraud are some of the challenges faced by the Trade Credit Insurance Market.
The increasing adoption of digital technologies, the growing demand for customized insurance solutions, and the emergence of new markets are some of the key trends shaping the Trade Credit Insurance Market.
The Trade Credit Insurance Market is expected to continue to grow in the future, driven by the increasing ization of trade and the growing awareness of the benefits of trade credit insurance. The market is also expected to benefit from the development of new products and services, as well as the expansion of the market into new regions.
The key opportunities for growth in the Trade Credit Insurance Market include the expansion of the market into new regions, the development of new products and services, and the increasing adoption of digital technologies.
