APAC to lead trade credit insurance, global growth to rise 9.3%

Robust activity in world trade pushed demand for trade credit insurance.

The trade credit insurance market is expected to experience robust growth, reaching $17.48b by 2028 with a compound annual growth rate (CAGR) of 9.3%, with Asia Pacific expected to be the fastest-growing region.

This growth is driven by factors such as global trade volatility, supply chain resilience, digitalisation of trade finance, emergence of new market players, and strategic risk management post-pandemic.

The report by ResearchAndMarkets.com titled "Trade Credit Insurance Global Market Report 2024" indicated that the surge in global trade activities is a significant driver for the trade credit insurance market.

With world trade reaching $28.5t in 2021, there is a growing demand for trade credit insurance to shield receivables from credit risks in international trade transactions.

Anticipated economic fluctuations and uncertainties contribute to the growth of the trade credit insurance market.

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Changes in GDP growth, stock market volatility, and exchange rate fluctuations impact businesses and individuals, highlighting the importance of trade credit insurance in mitigating risks.

Technology advancements play a crucial role in shaping the trade credit insurance market. 

Major players are focusing on developing innovative solutions, such as leveraging blockchain, smart contracts, and artificial intelligence to automate policy administration and compliance, thereby enhancing efficiency and user experience.

Prominent players in the trade credit insurance market are innovating their product offerings to cater to evolving business needs. 

These innovations include digitizing trade credit insurance, providing credit management tools, and offering adaptable and personalized insurance solutions to support industries and exporters.