Trade credit insurance market to grow 10.7% annually through 2033

Asia-Pacific is forecast to grow at the fastest rate.

The global trade credit insurance market is projected to grow significantly, rising from $14.9b in 2023 to $41.1b by 2033, according to a new report by Allied Market Research. 

This represents a compound annual growth rate (CAGR) of 10.7% over the forecast period.

The market is driven by factors such as expanding cross-border trade, rising commercial risks, and increased adoption of core banking solutions. 

The growing presence of small and medium enterprises (SMEs), along with opportunities in emerging markets, is also expected to boost demand for trade credit insurance solutions.

In 2023, whole turnover coverage accounted for the largest market share and is expected to maintain its lead. 

This type of policy covers multiple buyer risks and offers protection against late or failed payments, making it a preferred option for businesses across sectors.

Regionally, Asia-Pacific is forecast to grow at the fastest rate, driven by rising trade volumes in countries like China and India. 

Government initiatives, including updated regulations in India, are expected to further encourage adoption. 

The Insurance Regulatory and Development Authority of India’s revised guidelines, effective November 2021, aim to enhance industry resilience and competitiveness by encouraging more comprehensive coverage and innovation.