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Global trade credit insurance market reaches $14b in 2022 – ICISA

Trade credit insurance serves as a vital risk management tool for businesses.

The global trade credit insurance market reached a premium volume of $13.89b in 2022, the International Credit Insurance & Surety Association (ICISA) reported.

Insured shipments totalled $7t, with a penetration rate of 13.16% in the worldwide trade of goods.

Trade credit insurance serves as a vital risk management tool for businesses, offering protection against non-payment of trade receivables, the ICISA emphasised.

ICISA members focus on short-term, whole-of-turnover protection, collaborating with policyholders to assess credit limits. In the event of non-payment due to insolvency or protracted default, insurers indemnify businesses, enabling them to invest in growth and innovation.

ALSO READ: FM Global unveils $350m resilience credit for climate protection

Impact and significance

Estimating the global impact of trade credit insurance faces challenges due to data limitations and regional variations. 

Despite this, ICISA's analysis for 2022 indicates a premium volume of $13.89b, covering shipments valued at over $7t.

Trade credit insurance plays a crucial role in the real economy by securing favourable financing terms and enhancing cash flow security. 

However, the statistics reveal a significant protection gap, particularly for smaller businesses outside of Europe, where the product is less established.


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