Global Trade Credit Insurance Market By Coverage (Whole Turnover Coverage and Single Buyer Coverage), By Application (Domestic and International), By End-Use Industry, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023 – 2032

Report Overview

In 2022, the Global Trade Credit Insurance Market was valued at US$ 11 Billion and will reach US$ 26.6 Billion by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 9.5 %.

Trade credit insurance is a method that allows companies to get reimbursement when the customer fails to pay the money to the company due to insolvency, bankruptcy, or destabilizing political conditions. Many commercial buyers request credit for purchasing huge amounts of goods and services.

But lending a huge amount to the customers puts a supplier at risk that it won’t be repaid. Therefore, trade credit insurance market helps the companies to reimburse the money from the insured company. With rising trade activities across the countries, demand for trade credit insurance is growing significantly in the market. It allows the companies to protect themselves from the losses. Therefore, many companies across the world are adopting trade credit insurance to protect themselves from losses.

The main purpose of global trade credit insurance is to protect the accounts receivable from the possibility of losses and credit risks due to factors like prolonged default, bankruptcy, and insolvency. Therefore, many companies, from small enterprises to large enterprises, are adopting trade credit insurance for guarding and minimizing payment risks across various businesses. Moreover, trade credit insurance is made mandatory to continue operations in some parts of the world. This is forcing the companies to adopt trade credit insurance.

Driving Factor

Increasing Trade Activities and Rising Commercial Threats are Driving the Growth of the Global Trade Credit Insurance Market.

Growing trade activities of various goods and services between countries and regions are the primary factor driving the growth of the global trade credit insurance market. Due to rising trade activities, the companies have invested huge amounts of money in the market. Therefore, to protect the money, many companies have started to adopt trade credit insurance that guards the company’s money in case of bankruptcy and other issues.

These factors are propelling the growth of the global trade credit insurance market. Also, rising commercial threats like political instability, import restrictions, and contract cancellations are forcing many companies to adopt the trade credit insurance market. This is also acting as a driver for the global trade credit insurance market.

Restraining Factor

Complex regulations and a Lack of Awareness About Trade Credit Insurance are Expected to Hinder the Growth of the Market.

Trade credit insurance has different policies and regulations according to the country. The regulatory bodies have imposed complex regulations for trade credit insurance in many countries. With increasing trade activities, the insurance business is seeing significant growth in the market.

But the increasing regulations and complex rules are restricting many companies from adopting trade credit insurance. Also, the lack of awareness regarding trade credit insurance is directly affecting the growth of the global trade credit insurance market. All these factors are expected to hinder the growth of the global trade credit insurance market.

COVID-19 Impact Analysis

COVID-19 Affected Negatively on the Global Trade Credit Insurance Market.

During the COVID-19 pandemic, governments of many countries across the world have imposed heavy rules and regulations to control the spread of the virus. The manufacturing and transportation operations of many companies were halted, and global trade had also seen a drastic deep.

Therefore, the adoption of trade credit insurance decreased during the pandemic. However, after the ease of restrictions, many companies started to realize the importance of trade credit insurance. The trade credit insurance market has seen significant growth after the ease of COVID-19 restrictions.

By Coverage Analysis

Whole Turnover Coverage Leads the Global Trade Credit Insurance Market by Holding Major Revenue Share.

Based on coverage, the global trade credit insurance market is divided into whole turnover coverage and single buyer coverage. From these coverages, the whole turnover coverage dominates the global trade credit insurance market by securing a major revenue share of 61.4%.

This domination of whole turnover coverage is attributed to the policy of whole turnover coverage that allows the policyholder to claim the benefits over the whole payment. The companies prefer to adopt the whole turnover coverage than the single buyer coverage for supporting their credit control management and claim the benefit on total losses. These key factors are driving the growth of whole turnover coverage in the coverage segment of the global trade credit insurance market.

By Application Analysis

International Trade Credit Insurance Leads the Segment by Covering Major Revenue Share in Global Trade Credit Insurance Market.

On the basis of application, the global trade credit insurance market is classified into domestic and international. Among these applications, international holds a major revenue share of 65% to dominate the segment in the global trade credit insurance market. The growth of international trade credit insurance can be attributed to the advantages of trade credit insurance in international trades that, includes trading of major consignments.

It helps to reduce the payment risk for the companies by paying for the losses that occurred due to a foreign buyer is not able to pay. These key factors are boosting the growth of international trade credit insurance in the application segment of the global trade credit insurance market.

By End-Use Industry Analysis

Food & Beverage Dominates the End-Use Industry Segment by Securing Major Revenue Share in Account.

Based on the end-use industry, the global trade credit insurance market is classified into food & beverage, IT & telecom, healthcare, automotive, energy, and other end-use industries. Out of these end-use industries, food & beverage dominates the segment by covering the major revenue share of 18.6%.

This domination of food & beverage is due to the continuously rising food & beverage trade activities and simultaneously rising demand for trade credit insurance for protecting the value of food & beverage products. The rising trade activities across the world for various food and beverage products are positively affecting the growth of the global trade credit insurance market. These key factors are driving the growth of food & beverage in the end-use industry segment of the global trade credit insurance market.

After food & beverage, the automotive industry is expected to grow at the fastest CAGR during the forecast period. Rapid technological advancements and changing consumer preferences are boosting the automotive industry, which is directly expected to increase the demand for trade credit insurance in the market over the forecast period.

Trade Credit Insurance Key Market Segments

Coverage

• Whole Turnover Coverage
• Single Buyer Coverage

Application

• Domestic
• International

End-Use Industry

• Food & Beverage
• IT & Telecom
• Healthcare
• Automotive
• Energy
• Other End-Use Industries

Growth Opportunity

Increasing Government Support for Trade Credit Insurance is Expected to Create Many Opportunities in the Global Trade Credit Insurance Market.

Global trade activities have risen significantly in the last few years. As a result, the threat of fraud activities has also been raised. Therefore, the adoption of trade credit insurance has risen in the last few years.

To encourage trade activities and boost the economy of the country, many governments are offering trade credit insurance solutions to small and medium-sized enterprises. This is encouraging many companies to trade through the insurance offering countries. This move from the governments is expected to create many lucrative opportunities in the global trade credit insurance market over the forecast period.

Latest Trends

Significant Growth within BFSI Industry and Technological Advancements are Fueling the Growth of the Global Trade Credit Insurance Market.

The significant growth within the BFSI industry across the world over the last few years is a key factor positively affecting the global trade credit insurance market. Many key companies in the BFSI industry are offering trade credit insurance with various schemes and policies.

Due to this, many trading companies are adopting trade credit insurance to stop financial losses due to factors like bankruptcy and payment fraud. Moreover, the emergence of various advanced technologies like artificial intelligence and the Internet of Things in insurance solutions are further propelling the growth of the global trade credit insurance market.

Regional Analysis

Europe leads the Global Trade Credit Insurance Market by Holding Major Revenue Share Account.

The Europe region leads the global trade credit insurance market by holding a major revenue share of 31.6% in the account. It is also anticipated to continue its significant growth over the forecast period. The growth of the Europe region is owing to the presence of major key players within the region and the high adoption of advanced technologies.

The rising trade activities between various countries in the Europe region are increasing the demand for trade credit insurance in the market. Also, the governments of many countries in the Europe region are supporting the adoption of trade credit insurance among companies. These key factors are driving the growth of the trade credit insurance market in the Europe region.

After the Europe region, Asia Pacific is expected to grow at the fastest CAGR during the forecast period. Continuously rising trading activities from the countries like China, India, Japan, Australia, and many others countries are driving the growth of trade credit insurance in the Asia Pacific region. With increasing losses and threats to trade activities, the adoption of trade credit insurance is expected to grow significantly over the forecast period.

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Player Analysis

The market is fragmented into many companies offering trade credit insurance. However, the major players are focusing on the adoption of various strategies like acquisition, mergers, collaboration, and partnership to expand their business share in new regions and strengthen their position in the market. Some of the key players in the global trade credit insurance market are Allianz Trade, Atradius N.V., Coface, American International Group Inc, Zurich, Chubb, Great American Insurance Company, QBE Insurance Group Limited, Aon plc, Credendo, and Other Key Players.

Top Key Players in Trade Credit Insurance Market

• Allianz Trade
• Coface
• Atradius N.V.
• American International Group Inc
• Zurich
• Chubb
• QBE Insurance Group Limited
• Great American Insurance Company
• Aon plc
• Credendo
• Other Key Players

Recent Developments

• In November 2020, Euler Hermes Collaborated with Toucan Toco to launch TradeMatch, which allows the holders of trade credit insurance to be informed 24/7 about commercial risks.
• In June 2020, Zurich launched trade credit insurance in the UK to expand its operations in the country. It helped the businesses in the region to trade fearlessly during the COVID-19 pandemic.

Report Scope