Global trade drives 8.4% growth in import-export insurance

Banks, lenders often require importers and exporters to have insurance in place.

The global import-export insurance market is projected to grow at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2030, according to HTF MI.

The market is expected to increase from $11.9b in 2024 to $19.84b by 2030.

Import-export insurance provides protection to businesses engaged in international trade, covering potential damage or loss of goods during transit. 

The rising demand for this type of insurance is driven by increasing globalisation and the need for financial protection to secure credit lines from financial institutions. 

Banks and other lenders often require importers and exporters to have insurance in place before offering credit facilities such as letters of credit or export financing.

The market's growth is supported by the increasing volume of global trade, as companies expand their operations to international markets and source products from overseas. This trend has intensified the demand for insurance to mitigate the risks associated with cross-border trade.

Opportunities in the market include the development of customised insurance solutions that cater to the specific needs of different industries and trade routes. As businesses face unique risks depending on their sector and geography, tailored coverage can provide more comprehensive protection. 

Additionally, the integration of technology, such as blockchain and advanced data analytics, could enhance transparency and streamline underwriting processes, benefiting both insurers and customers.

However, market growth faces challenges from economic fluctuations and the high cost of insurance. 

Economic downturns can reduce international trade activity, subsequently lowering the demand for import-export insurance. The high cost of insurance, particularly for small and medium-sized enterprises (SMEs), may also be a barrier to wider adoption, as some businesses may struggle to afford comprehensive coverage.