About Trade Insurance
Global trade has changed significantly since the financial crisis and the collapse of Lehman Brothers in 2008, which spread protectionism and nationalism amid global economic and political volatility. To fill the gap left by banks shrinking their balance sheets, commercial transactions have been increasingly supported by structured credit modalities carried out by factories, financing ‘Accounts Receivable’ in local and international currencies. The Covid-19 crisis is further transforming the trade credit market. The sector may reach USD 10 trillion in volume globally by 2030. Trade credit insurers are also impacted by the Covid-19 crisis. With an expectation of increasing loss trends in the short term, indemnity reserves may need to be established. The market appetite following Covid-19 may be a little different from what we saw in the past decade. Countries like France, Germany, and the Netherlands have introduced measures offering support to the trade credit insurance industry through guarantees backed by public funds, allowing insurers to maintain limits and capacity. In turn, insurers transfer part of the premium collected to the government. This is an interesting and creative tool that if adopted in other countries such as in Brazil could not only protect the credit insurance industry but perhaps most importantly, guarantee access to commercial credit which is vital for the economy.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
High Growth Market | Asia Pacific |
Unit | Value (USD Million) |
CAGR | 3.36% |
Analyst at AMA Research estimates that European Players will contribute the maximum growth to Global Trade Insurance market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
HCC International (United Kingdom), Travelers (United States), Euler Hermes (France), Credimundi (Belgium), ACE (United Kingdom), Argo Surety (United Kingdom), Zurich (Switzerland), AIG (United States), Novae Group plc (United Kingdom), SACE BT (Italy), Atradius (United Kingdom) and Aon (United Kingdom) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are QBE, Coface, Groupama Assurance Crédit, Euler Hermes, FCIA., IFFCO-Tokio General Insurance Company Limited, Atradius and Nippon Export and Investment Insurance.
Segmentation Overview
AMA Research has segmented the market of Global Trade Insurance market by Type (Property/Cargo Insurance, Product Liability Insurance, Foreign Currency Exchange Insurance, Trade Credit Insurance and Others) and Region.
On the basis of geography, the market of Trade Insurance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). North America region held largest market share in the year 2023. Europe, on the other hand, stood as the second largest market due to the presence of key companies in the region and high technological advancement. If we see Market by Organization Size, the sub-segment i.e. SME’s will boost the Trade Insurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Sales Channel, the sub-segment i.e. Online will boost the Trade Insurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Trade Type, the sub-segment i.e. Domestic will boost the Trade Insurance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Rapidly Growing International Trade Volumes and Political Events, Economic Downturns, and Natural Disasters Fuels the Need of Trade Insurance Coverage
Market Growth Drivers:
Growing Popularity of Online Sales Channel
Restraints:
The lack of technical expertise
Opportunities:
COVID 19 pandemic is further increasing uncertainty and protectionism in global trade which is set to boost demand for trade credit insurance. and Emerging Demand from Developing Countries
Key Target Audience
Trade Insurance Providers, Government Regulatory Bodies, Private Research Organization, Government Research Organization and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.