Trade credit insurance and surety bonds have a tendency to be viewed as specialist financial products, the nuances of which are only to be braved by the likes of insurers, banks, and large corporations. 

The International Credit Insurance & Surety Association (ICISA), celebrating its 100th year, is a heavy proponent that the role these instruments play in the real economy is, in fact, much broader.

A new report from the association, published as part of centenary celebrations and drawing on experiences from businesses, banks, factors, and infrastructure companies around the world, points to six main reasons that organisations consistently use trade credit insurance, credit and political risk insurance (CPRI), and surety.

The first is access to finance and support for growth. Businesses use these products to help them sell to new customers, according to the report, enter new markets, and take on larger opportunities that they might otherwise consider too risky. Indeed, several companies have said the products had helped them expand into new geographies and strengthen relationships with customers and counterparties.

The second reason is working capital. Surety bonds can be used to help companies avoid tying up valuable bank credit lines, while, at the same time, insured receivables can improve access to financing. For many businesses, this means more cash is available for day-to-day operations, investment, and other assorted growth opportunities.

A third reason is resilience. Any number of events can happen over the course of a transaction, many beyond the control of any counterparty, that can bring some serious financial impact. ICISA argues that trade credit insurance, CPRI, and surety help businesses absorb these shocks and continue operating even when such unexpected surprises arise.

The products also play an important role in risk management and governance. For larger organisations, credit assessments, underwriting decisions, and insured credit limits can act as an additional source of information when businesses are deciding who to trade with and how much risk they are prepared to take. Many users value this external view of risk, and the insights that come with it, as much as they value the insurance cover itself.

Fifth on the list: speed and reliability. In competitive industries, delays can mean lost opportunities, making responsiveness a valuable part of the service. This is a major reason why many businesses point to the importance of being able to secure guarantees or increase credit capacity within tight commercial deadlines. As the old saying goes, time is money.

The last, but certainly not least, of the six reasons that ICISA identified in its report is the value of long-term partnerships. Rather than viewing insurers as providers of a single product, many of the consulted businesses described relationships that have developed over years or even decades. These partnerships tend to provide access to invaluable aspects like market knowledge, local expertise, and a deeper understanding of risks in different countries and sectors.

Trade credit insurance, CPRI, and surety, then, are not simply niche risk management tools, as the traditional thinking may go. It is clear from looking at the industry that they help businesses access finance, support growth, improve resilience, and facilitate trade and investment across the global economy.

Founded in 1926, ICISA represents trade credit insurers, sureties, and reinsurers worldwide. According to the association, its members accounted for more than €3 trillion of insured trade receivable exposures in 2025, alongside billions more in surety bonds supporting sectors such as construction, energy, and infrastructure.

Happy 100 ICISA!