Trade Credit Insurance Market Size, Share & Trends Analysis Report By Enterprise Size (Large, SMEs), By Coverage (Whole Turnover, Single Buyer), By Application, By End-user (Energy, F&B), By Region, And Segment Forecasts, 2022 - 2030

Trade Credit Insurance Market Size, Share & Trends Analysis Report By Enterprise Size (Large, SMEs), By Coverage (Whole Turnover, Single Buyer), By Application, By End-user (Energy, F&B), By Region, And Segment Forecasts, 2022 - 2030

Trade Credit Insurance Market Growth & Trends

The global trade credit insurance market size is anticipated to reach USD 19.85 billion by 2030, registering a CAGR of 11.1% over the forecast period, according to a new report by Grand View Research, Inc. The demand for trade credit insurance (TCI) has been gaining momentum as the pandemic has led to increased uncertainties in global businesses. In addition, the temporary shutdown of production units has 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. The COVID-19 pandemic significantly impacted the global industry. Lockdowns were implemented due to the pandemic, which led to a temporary prohibition on import and export, and manufacturing across multiple industries.

TCI witnessed a decline due to the worldwide lockdown caused by the pandemic and the prohibition on imports and exports. However, the demand for TCI is on the rise since 2021 due to financial uncertainty. Europe captured the highest revenue share in 2021 and is expected to retain its position over the forecast period. This is attributed to the presence of major companies like Chubb, Zurich, Allianz Trade, Coface, and Atradius N.V. in the region. Also, the high adoption of advanced technologies and government schemes is expected to support companies in the region by promoting TCI. Asia Pacific is anticipated to expand at the highest CAGR over the forecast period.

This is attributed to the growth of Small & Medium Enterprises (SMEs) in the region and an increase in export & import in countries like India, China, Japan, and Australia. Mergers & acquisitions, partnerships, agreements, and expansions are the key strategies being adopted by the companies operating in the global industry. For instance, in May 2022, Coface entered into a strategic partnership in credit insurance with Doha Insurance Group (DIG), the third-largest insurance player by gross written premiums in Qatar. The partnership aims to provide credit insurance products to Qatar companies, thereby boosting their growth in export as well as domestic markets.

Trade Credit Insurance Market Report Highlights

• The large enterprise size segment accounted for the largest share in 2021 due to large enterprises engaging in bulk trading, collecting a large amount of data, and being vulnerable to market or regional fluctuations
• The SME segment will register the fastest CAGR from 2022 to 2030 due to the different schemes being introduced by governments worldwide to support SMEs. For instance, the African Development Bank introduced the Transaction Guarantee scheme in 2021. It was supported by the World Bank and was aimed at helping enterprises, SMEs, and local banks with the ultimate objective of increasing trade to and from Africa
• The whole turnover coverage segment led the industry in 2021 as the whole turnover TCI provides better protection and is an excellent risk management solution, as it allows for coverage for all the accounts receivable and reduces credit risk
• The single-buyer coverage segment will register the fastest CAGR from 2022 to 2030 due to the single-buyer policy providing highly tailored protection against both economic and political threats
• The international application segment led the market in 2021 since it reduces the payment risks associated with doing business internationally. The domestic segment is likely to register the fastest CAGR from 2022 to 2030 owing to a rise in the use of TCI for domestic accounts receivable protection