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.

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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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