Trade Credit Insurance Market

Trade Credit Insurance Market - By Organization Size (SMEs, Large Enterprise), By Coverage (Whole Turnover, Single Buyer), By Application (Domestic, International), By End Use (Healthcare, Automotive, F&B, IT & Telecom, Manufacturing) & Forecast, 2023 – 2032

Published Date: May - 2025 | Publisher: MRA | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format

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Trade Credit Insurance Market Size

Trade Credit Insurance Market was worth 9.2 billion in 2022 and is projected to record a CAGR of 10.2% during the forecast period of 2023 to 2032. The growth of trade across the world has established a need for trade credit insurance to minimize the risk of non-payment by international buyers, thus adding to the share of the trade credit insurance market. The heightened uncertainty in international trade and protectionism will drive the need for trade credit insurance. In addition, these insurers supply information to their insured businesses regarding the companies they wish to do business with, thus enabling them to identify payment trouble and enabling insured businesses to conduct their businesses with increased confidence.

 

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Trade credit insurance, also known as credit insurance or export credit insurance, is a type of insurance coverage that protects businesses from the risk of non-payment by their customers or debtors. It provides financial protection to businesses that sell goods or services on credit terms, safeguarding their trade receivables and reducing the risk of potential losses due to customer insolvencies, protracted defaults, or political & economic events.

Trade Credit Insurance Market Report Attributes
Report Attribute Details
Base Year 2022
Trade Credit Insurance Market Size in 2022 USD 9.2 Billion
Forecast Period 2023 to 2032
Forecast Period 2023 to 2032 CAGR 10.2%
2032 Value Projection USD 23.9 Billion
Historical Data for 2017 to 2021
No. of Pages 272
Tables, Charts & Figures 317
Segments covered Organization Size, Coverage, Application, End-Use, and Region
Growth Drivers
  • Expansion of international trade activities
  • Economic fluctuations and uncertainties
  • Market expansion in emerging economies
  • Rising awareness about the benefits of trade credit insurance
Pitfalls & Challenges
  • High insolvency risks
  • Unexpected and significant claim payments

What are the growth opportunities in this market?

In periods of economic recession or downturn, companies are likely to face financial setbacks, thereby enhancing the prospects of payment defaults and insolvencies. Such difficult economic times can result in a higher volume of claims in the trade credit insurance sector, affecting the profitability of the insurer and even triggering premium hike. Additionally, shifting international trade patterns, geopolitics, or trade tensions can also dislocate international trade flows and affect the creditworthiness of companies. Trade uncertainty or the presence of trade barriers can bring in new risks, making it difficult for insurers to properly evaluate and price policies accurately.


The COVID-19 pandemic had affected the international trade dynamics such as trade credit insurance. Governments were compelled to close international borders and shut markets, industries, and other public venues temporarily in 2020 because of the pandemic. Closure of manufacturing plants led to revenue loss for companies, which pushed many large companies to bankruptcy. Supply chain disruptions impaired international trade and sales, reducing the need for trade credit insurance in 2020. Nonetheless, despite these uncertainties, numerous companies have sought trade credit insurance to shield their trading risk and carry on business with assurance.

Trade Credit Insurance Market Trends


Trade credit insurance shields companies against economic and political risks that are likely to pose threats to their financial position. The advantages of trade credit insurance policies, which include the guarding of accounts receivable against the loss resulting due to bankruptcy or credit risks involving prolonged default, are stimulating the use of the product across the world. Also, increasing strategic initiatives among competitors like collaborations, partnerships, and acquisitions are projected to propel the growth of the market. Improvements in digital technology will allow insurers to deliver more cost-effective & efficient services, making trade credit insurance more affordable & accessible to businesses.

Trade Credit Insurance Market Analysis

Learn more about the key segments shaping this market

 

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In terms of trading insurance, there are either small and medium-sized enterprises (SMEs) or large businesses. It's the latter which is forecast to power the expansion in trade credit insurance in the coming decade with a predicted annual growth of more than 9% by 2032. Why? Because large corporations are increasingly recognizing the importance of insuring themselves against the risk of non-payment by customers. Consider a business such as Allianz Trade for instance. They're famous for providing trade credit insurance that's specifically geared to the needs of large businesses. With their insurance policies, these businesses are able to keep their cash circulating and safeguard the funds they're owed. And why would large businesses need this? Because they tend to sell a lot of products and tend to have to wait a long time to be paid, meaning there's more likelihood of customers not being able or willing to pay.

Find out more about the most important segments influencing this market

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Suppose you're an insurance specialist speaking with someone from the automotive sector. You"So, trade credit insurance, it insures various industries such as healthcare, food, and even technology. But I want to turn the subject to yoursautomotive." Automotive Executive"Yeah, that's why we're here." You"Now, the auto sector is a huge puzzle, isn't it? With all this new technology, evolving tastes, and government regulations, you never know what's going to happen next." Automotive Executive"Tell me about it. It's a rollercoaster!" You"That's why trade credit insurance is so valuable. It's like a safety net when you are transacting with various customers and big-ticket purchases. It safeguards you in case they can't pay out." Automotive Executive"Makes sense. And more folks in the business are seeing how useful it is." You"Exactly. It's a win-win."

Seeking region specific information?

Europe is the monarch of the world of trade credit insurance, with a massive 35% market share in 2022. Why is Europe so favored for this kind of insurance? Stability, my friend. Europe's economy is rock solid, and its legal frameworks are among the best in the world, so it's a safe bet for companies to get on with business. But don't get complacent; even mighty Europe can experience some rough patches. Economic downturns, political scandals, and changes in government policy can give it a dicey time for companies to get paid back. That's where trade credit insurance rides to the rescue like a superhero. It's a protective shield against the financial hurt of nonpaying customers. Europe's a hectic hotspot for purchasing, selling, and exchanging, not just within the EU but around the world outside it too. With all that global activity, there's an awful lot at stake. Trade credit insurance can protect companies against losing their hard-won assets to the horror story of unrecovered invoices.

Trade Credit Insurance Market Share

Some major players operating in the trade credit insurance market are

These players are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They heavily invest in research to introduce innovative products and garner the maximum market revenue.

Trade Credit Insurance Industry News

  • In April 2023, Allianz Trade, a trade credit insurance provider, partnered with Bueno.money, a Singapore-based B2B BNPL provider, to enter the growing Asia Pacific B2B e-commerce arena. With the help of Allianz Trade’s innovative credit solution, E-commerce Credit Insurance, Bueno.money will provide deferred payment solutions to online merchants in real-time while mitigating credit risks.
  • In July 2022, The Export Credit Guarantee Corporation of India (ECGC), an export credit provider, announced a new scheme to insure up to 90% of the credit risk in export finance, assisting small- & medium-sized exporters by empowering banks and financial institutions to provide more credit for export in the face of global economic volatility.

The trade credit insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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By Organization Size

  • SMEs
  • Large enterprise

By Coverage

  • Whole turnover coverage
  • Single buyer coverage

By Application

  • Domestic
  • International

By End Use

  • Healthcare
  • Automotive
  • Food & beverages
  • IT & telecom
  • Manufacturing
  • Others

The above information is provided for the following regions and countries

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Sweden
    • Switzerland
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Singapore 
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • UAE
    • Saudi Arabia
    • Israel

Frequently Asked Questions (FAQ)

What is the size of the trade credit insurance market?

Market size for trade credit insurance reached 9.2 billion in 2022 and will record 10.2% CAGR from 2023-2032 driven by the surging need to limit the risk of non-payment from foreign buyers.

Why is the demand for trade credit insurance growing across the automotive sector?

Trade credit insurance industry share from the automotive industry is estimated to exceed USD 2.2 billion by 2032 due to the changing consumer tastes, government regulations, and relative pricing.

What is the trade credit insurance market worth in Europe?

Europe held more than 35% of the trade credit insurance industry share in 2022 owing to the presence of economic stability and well-established legal frameworks in the region.

Who are the major trade credit insurance business players?

American International Group, Inc, Aon Plc, Atradius, Chubb, Coface, Credendo, Export Development Canada (EDC), Euler Hermes, and Great American Insurance Company are some of the key trade credit insurance providers

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