The large enterprise segment dominated the trade credit insurance market in 2019, and this dominance is expected to continue throughout the forecast period. This is because firms in this category deal in large amounts of data and engage in bulk trade. As a result, to safeguard money and combat political and commercial risks, this segment highlights the relevance of market trade credit insurance solutions and services.
The global Credit Insurance market is anticipated to increase at a 9% CAGR to reach value USD 24,472 million in 2030
The trade-credit insurance market is classified by component, company size, application, coverage, industry vertical, and geography. The market is divided into two components: items and services. It is divided into three categories based on enterprise size: major enterprises, medium companies, and small firms. It is divided into two types based on application: domestic and international.
The market is divided into two coverage types: full turnover coverage and single buyer coverage. The industry verticals are food & drinks, I.T. & telecom, metals & mining, healthcare, energy & utilities, automotive, and others. The trade-credit insurance industry is examined throughout North America, Europe, Asia-Pacific, and Latin America.
Credit insurance, often known as trade credit insurance, is a risk management strategy that covers the payment risk associated with purchasing and delivering products and services. It is obtained to protect or mitigate financial losses in sudden insolvency, bankruptcy, or prolonged payment default. It protects manufacturers, merchants, and service providers from damages resulting from the non-payment of commercial trade debt. Credit card customers can frequently obtain insurance for a modest monthly percentage of the card's outstanding amount. TCI is also used to ensure local and international trade operations and provide coverage for entire or single transactions. As a result, it is widely employed in various industries, including food and beverage, information technology (I.T.), telecommunications, healthcare, energy, and automotive.
Significant expansion in the banking, financial services, and insurance (BFSI) business throughout the world is one of the primary drivers driving the market's favorable outlook. Furthermore, the growing need for efficient solutions to safeguard and reduce the risks of non-payment across various products and service sectors is propelling market expansion. With expanding import and export activity, businesses are increasingly relying on financial tools such as TCI and letters of credit (L.C.) to protect themselves against financial losses. Under this, an increase in the number of small and medium-sized organizations (SMEs) contributes to market growth. Various technical breakthroughs, such as the introduction of artificial intelligence (A.I.) and the Internet of Things (IoT)-enabled insurance products, are also driving growth. These technologies help execute automated business processes, self-learning models, network analysis, predictive analytics, and device identification, all of which are extremely useful for risk prediction. Other factors, such as increased digitalization of the insurance business and favorable government laws fostering fair trading practices, are expected to move the market forward.
With the growing export and import of products and services globally, the market has gained pace in the growth of commerce in new regions. Furthermore, due to the increased trade, which includes the issuance of letters of credit (L.C.s), receivables and invoice financing, and other services, the demand for credit insurance has accelerated. It is expected to maintain its dominance throughout the trade credit insurance forecast period. Furthermore, trade credit is utilized by manufacturers, importers, exporters, buyers, and sellers to facilitate trade finance. As a result, the spike in demand for products and services from one nation to another and the growth of commerce in other regions have expanded, enhancing the market need for trade credit insurance. Trade Regulations that Vary and Conflict Across Jurisdictions
Credit insurance Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 24,472 million|
|Growth Rate||CAGR of 9% during 2020-2030|
|Segment Covered||By Component, By Coverage, By Industry Vertical, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Aon plc, Atradius NV, Coface, Credendo, EULER HERMES, Export Development Canada, QBE Insurance (Australia) Ltd., SINOSURE and Zurich, among these.|
Segment by Component:
Segment by Coverages:
- Whole Turnover Coverage
- Single Buyer Coverage
Segment by Enterprises Size:
- Large Enterprises
- Medium Enterprises
- Small Enterprises
Segment by Application:
Segment by Industry Vertical:
- Food and Beverages
- I.T. and Telecom
- Metals and Mining
- Energy and Utilities
Segment by Region:
- North America
- United States
- South Korea
- United Kingdom
- Latin America
- Middle East and Africa