Trade Credit Insurance Market To Reach $22.13 Billion By 2030

Trade Credit Insurance Market Growth & Trends

The global trade credit insurance market size is anticipated to reach USD 22.13 billion by 2030, exhibiting a CAGR of 11.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growth of the market can be attributed to the increasing uncertainty and non-payment frauds. Furthermore, the rise in the import and export trades worldwide is also anticipated to drive the market’s growth.

Recently, venture capital firms have started focusing on insurance start-ups, assisting them in raising funds to expand their product portfolios and strengthen their market position. For instance, in June 2022, Hokodo Services Ltd, an insurance company based in London, announced that it raised USD 40 million through a series B funding round led by Notion Capital, a venture capital fund. The company aimed to utilize these funds to redefine the way that businesses transact.

The increasing partnerships between the market players to expand their offerings across various regions are anticipated to drive the market’s growth. For instance, in June 2022, Coface, a trade credit insurance provider, entered into a strategic partnership with Doha Insurance Group, an insurer in Qatar. This partnership was aimed at offering credit insurance products to companies based in Qatar and assisting them in boosting their growth in their export and domestic markets.

The COVID-19 pandemic significantly impacted the global industry. Lockdowns were implemented due to the pandemic, which led to a temporary prohibition on import, export, and manufacturing across multiple industries. Furthermore, it resulted in a sudden drop in the demand for trade credit insurance policies. However, the temporary shutdown of production units led to increased losses for businesses, due to which defaults in payment have risen tremendously, acting as one of the key drivers of the industry.

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Trade Credit Insurance Market Report Highlights

• The large enterprises segment accounted for the largest share in 2023. The growth can be attributed to the help offered by trade credit insurance to large national and multi-national companies to improve credit management, introduce lines of credit, expand sales markets, enhance their balance sheet to increase shareholder value and protect cash flow.

• The whole turnover coverage segment led the industry in 2023. The whole turnover trade credit insurance policies provide better protection. They are an excellent risk management solution, as they allow for coverage for all the accounts receivable and reduce credit risk, thereby fueling the segment's growth.

• The international application segment dominated the market in 2023. The growth can be anticipated owing to factors such as low risk and greater confidence due to no fear of non-payment by foreign buyers.

• The food & beverage as a single individual segment dominated the market in 2023. The growth of the segment can be attributed to a high degree of credit risk in the food & beverage sector due to the involvement of perishable items and the reliance on a few large customers.

• Europe dominated the market in 2023. The growing adoption of trade credit insurance policies across regions is anticipated to fuel the regional market's growth.

• Key market players are engaging in strategic partnerships and collaborations. In April 2023, Allianz Trade entered the thriving B2B e-commerce arena in Asia Pacific through its partnership with Bueno.money, a B2B BNPL provider based in Singapore. Bueno.money can provide deferred payment solutions to online merchants in real-time while safeguarding credit risks with the help of Allianz Trade's innovative credit solution, E-commerce Credit Insurance.

Trade Credit Insurance Market Segmentation

Grand View Research has segmented the global trade credit insurance market based on enterprise size, coverage, application, end-use, and region.

Trade Credit Insurance Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

• Large Enterprises

• Small & Medium Enterprises

Trade Credit Insurance Coverage Outlook (Revenue, USD Billion, 2017 - 2030)

• Whole Turnover Coverage

• Single Buyer Coverage

Trade Credit Insurance Application Outlook (Revenue, USD Billion, 2017 - 2030)

• Domestic

• International

Trade Credit Insurance End-use Outlook (Revenue, USD Billion, 2017 - 2030)

• Food & Beverage

• IT & Telecom

• Healthcare

• Energy

• Automotive

• Others

Trade Credit Insurance Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • U.K.

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East & Africa (MEA)

  • UAE

  • KSA

  • South Africa

List of Key Players in the Trade Credit Insurance Market

• Allianz Trade

• Atradius N.V.

• Coface

• American International Group, Inc. (AIG)

• Zurich

• Chubb

• QBE Insurance Group Limited

• Great American Insurance Company

• Aon plc

• Credendo.