Breaking news:Trade credit insurance supported 15% of global trade in 2024, says the latest ICISA update

The International Credit Insurance and Surety Association (ICISA) has released its latest estimate on the role of trade credit insurance (TCI) in global commerce for the year 2024. According to ICISA, TCI supported approximately 15% of world trade, maintaining its share from 2023, and underpinned an estimated €9.25 trillion in transactions, up from €8.5 trillion the previous year. 

This growth aligns with the increase in global GDP as reported by the World Bank. In 2024, trade credit insurance generated around €16 billion in premiums.

Managing risks amid global economic uncertainty

The year 2024 saw significant uncertainty for businesses globally. With geopolitical tensions and supply chain disruptions, businesses faced operational challenges. 

There was also a rise in insolvencies across multiple markets. This resulted in trade credit insurance proving a safety net.

By mitigating the risk of non-payment, TCI provided companies with the flexibility to trade resiliently and maintain access to finance. 

TCI protects businesses from the financial fallout of trade defaults by covering invoice non-payment, a critical concern for companies operating across borders, especially as many seek new trading partners amid shifting global trade patterns. Trade credit insurance absorbs these risks, and allows businesses to focus on growth and expansion while freeing capital for reinvestment. 

By securing receivables, TCI improves access to financing, as banks regard credit-insured transactions as more secure assets. 

In this way, TCI acts as a buffer, preventing financial shocks from cascading into broader economic disruptions and helping businesses maintain stability despite unforeseen defaults.

How do ICISA members assist in global trade facilitation?

ICISA’s membership spans all six continents and supports companies of all sizes across diverse sectors. 

The association estimates that private insurers accounted for approximately 71% of the short-term trade credit insurance market in 2024. ICISA members alone account for 92% of this private market share.

The association’s market impact estimates derive from a comprehensive compilation of data from multiple sources, including ICISA’s own annual statistics from its global insurer members. 

While precise data on the global trade credit insurance market remains challenging to obtain and requires certain assumptions, this annual exercise highlights a market evolving to meet client needs amid economic and geopolitical shifts.

According to ICISA, underwriting discipline remains an important part of the industry’s ability to serve clients sustainably. Maintaining it ensures that trade credit insurance continues to meet the demands of businesses and economies worldwide.