Credit Insurance Market Size, Share

Credit Insurance Market Overview

Global credit insurance market size is anticipated to be worth USD 13048.71 million in 2024, projected to reach USD 15754.95 million by 2033 at a 2.1% CAGR.

The global credit insurance market plays a critical role in ensuring business continuity by mitigating trade risks across domestic and international markets. In 2024, over 61 million active credit insurance policies were issued globally, reflecting rising adoption across SMEs and large enterprises. Credit insurance coverage spans short-term transactions under 360 days and mid-term contracts extending up to 5 years. In Europe alone, more than 29 million policies were active, with 41% of insured businesses operating in manufacturing and wholesale sectors. North American credit insurance claims reported in Q4 2023 exceeded 12,800, showing a 6.4% increase from Q3 2023. As trade volumes expand, especially in emerging markets, credit insurance becomes increasingly vital. Nearly 52% of credit-insured transactions in 2024 involved cross-border buyers. Furthermore, the insured value of total trade exposure surpassed USD 3 trillion, with over 33% of that tied to the electronics, automotive, and energy sectors. These statistics demonstrate the market’s deep integration into global supply chains and risk mitigation strategies.

Key Findings

Top Driver reason: Surge in insolvency rates globally driving credit insurance demand.

Top Country/Region: Germany accounts for 17% of total European credit-insured trade value.

Top Segment: Export trade accounted for 62% of total policies issued in 2024.

Credit Insurance Market Trends

A significant trend in the credit insurance market is the rapid digital transformation of underwriting processes. In 2024, over 72% of credit insurers used AI-based credit scoring models to evaluate buyer risk profiles, compared to just 47% in 2022. Blockchain-enabled smart contracts are being piloted in high-risk regions such as Latin America, with over 800 smart contracts processed monthly by leading insurers in Q3 2024. The credit insurance market has also observed a trend toward modular coverage plans; 38% of small enterprises now purchase flexible single-buyer policies as opposed to traditional multi-buyer annual plans.

Another trend is the integration of ESG risk evaluation in credit risk assessments. Over 3,400 companies had their ESG scores reviewed as part of credit underwriting in 2023. Additionally, emerging markets like Vietnam, Nigeria, and Chile experienced a 22% rise in first-time credit insurance policy registrations in 2024. Mobile-accessible policy management solutions saw a 49% uptick in usage, with 6.2 million users globally managing policies via mobile apps. These changes reflect a broader shift in market behavior favoring digitization, transparency, and risk stratification.

Credit Insurance Market Dynamics

DRIVER

Rising insolvencies across global supply chains.

Global insolvencies increased by 14.6% year-on-year in 2023, affecting over 270,000 businesses across 32 major economies. In the UK alone, business insolvencies rose to 23,217 in 2023 from 18,924 in 2022. This spike has pushed companies to hedge risks through credit insurance. For instance, export-import businesses in Europe added over 2.3 million new credit insurance policies in 2024 to buffer against the surge in buyer defaults. Industries such as automotive parts and electronics saw the steepest increase in credit insurance adoption, with claim filings rising by 12.8% and 11.1% respectively over the previous year.

RESTRAINT

Limited awareness among small and medium enterprises.

Despite being responsible for 41% of global trade, SMEs still lag in adopting credit insurance. Only 27% of SMEs in developing markets are familiar with credit insurance benefits. In India, less than 19% of exporters with turnover below USD 5 million held any form of credit insurance as of Q1 2024. High premium perception and lack of product customization deter broader SME uptake. In Latin America, only 13,800 out of 158,000 small exporting firms used trade credit insurance in 2023. This awareness gap limits overall policy issuance growth.

OPPORTUNITY

Digital transformation driving policy accessibility.

The proliferation of digital platforms has reduced onboarding times for new credit insurance customers by up to 63%. In 2024, nearly 48% of all new policy applications in Asia-Pacific were submitted via web portals. Cloud-based automated underwriting engines processed over 9.2 million applications globally. The cost per policy underwriting fell by 28% due to digital tools. Insurers are leveraging APIs and open banking platforms to enable real-time credit assessments, especially for e-commerce B2B transactions, which reached 5.7 billion transactions in 2023 alone. This digitization wave presents scalable growth paths for the credit insurance market.

CHALLENGE

Political and economic instability in emerging regions.

Geopolitical risks remain a persistent challenge. Credit insurers received 9,700 political risk claims in 2023, mainly from African and Middle Eastern countries. In Nigeria, 32% of claims filed in 2023 involved state-owned or government-linked entities. Venezuela and Argentina saw a combined 18% rise in denied payments due to currency devaluation. Such unpredictable environments lead to increased loss ratios, deterring global insurers from offering full coverage in high-risk markets. The lack of reliable buyer financial data in these regions further hinders accurate underwriting and portfolio risk control.

Credit Insurance Market Segmentation

The credit insurance market is segmented by type and application. These segments reveal varying adoption trends across business size and trade types. Export-oriented policies accounted for 62% of the market in 2024, while SMEs constituted over 47% of new policyholders globally.

By Type

Domestic Trade: Domestic trade credit insurance covered over 1.7 million policyholders in 2023. In France, 48% of credit insurance policies focused on internal trade. The construction and retail sectors accounted for 58% of all domestic trade policy claims in 2024. Germany alone processed 62,000 domestic trade credit claims in 2024. Domestic insurance plans are more prevalent in countries with extensive internal supply chains such as the United States, where domestic shipments account for 78% of industrial output.
Export Trade: Export trade credit insurance dominated the market, comprising 62% of active policies in 2024. China recorded 1.2 million export policy issuances in 2023, while Japan and South Korea combined issued 940,000 policies for exporters. Credit insurers processed over 450,000 cross-border claims in 2024, with 39% involving transactions in high-risk territories. Exporters dealing in electronics and machinery reported the highest insurance utilization rate, at 64% of all insured trade value.

By Application

Buyer: Turnover below EUR 5 Million: Businesses with lower turnovers represented 35% of all policy buyers in 2024. In Brazil, 28,000 such companies used short-term credit insurance in 2024, with 67% of those in the food processing and garment sectors. Australia saw a 24% increase in SME credit insurance enrollment, driven by trade financing conditions. However, claim resolution periods for this segment averaged 46 days, longer than for large buyers.
Buyer: Turnover above EUR 5 Million: Larger corporations accounted for 65% of policy volumes, with over 5 million policies issued globally. In the U.S., Fortune 500 companies submitted over 13,000 credit insurance claims in 2023 alone. Industrial suppliers, energy conglomerates, and electronics exporters dominated this segment. Over 89% of high-turnover buyers use comprehensive multibuyer policies that include coverage for geopolitical and currency risks.

Credit Insurance Market Regional Outlook

In 2024, regional market performance varied based on trade volumes and default risks. Europe led with the most active policies, while Asia-Pacific showed the fastest growth in insured trade transactions.

North America

Over 2.4 million policies were active in the region, with the U.S. contributing 74% of policy volume. The credit insurance penetration rate among exporters exceeded 52%. Canada issued over 410,000 policies in 2023, mainly in mining and timber exports. Average claim payout in the U.S. reached USD 280,000, driven by defaults in the tech and automotive industries.

Europe

Europe remained the largest credit insurance market, with more than 4.8 million active policies in 2024. Germany, France, and the UK made up 68% of Europe’s policy volume. Germany alone issued 1.3 million policies, while Italy handled over 132,000 claims. Manufacturing and chemical exports represented 47% of insured trade in this region.

Asia-Pacific

Asia-Pacific issued 3.1 million new policies in 2024, with China accounting for 58% of that figure. India recorded a 29% increase in policy registrations among SMEs. Japan’s credit insurance market processed over 76,000 claims in 2023, mainly in electronics. Australia had 17,400 active policies for agricultural exports.

Middle East & Africa

The region saw 820,000 active credit insurance policies in 2024. South Africa led with 280,000 policies, followed by the UAE with 192,000. Over 41% of policies here were issued in the oil and commodities trade. Political and payment risks accounted for 61% of total claims in this region, particularly in Nigeria and Egypt.

List of Top Credit Insurance Market Companies

Euler Hermes
Sinosure
Atradius
Coface
Zurich
Credendo Group
QBE Insurance
Cesce

Top Two Companies with Highest Share

Euler Hermes: held a 31% global share of credit insurance policy volume in 2024, with over 5.4 million policies issued across 52 countries.

Atradius: followed with 26%, serving more than 30,000 clients and processing over 92,000 claims globally in 2023.

Investment Analysis and Opportunities

The credit insurance market experienced significant capital inflows in 2023-2024. Global investment in credit insurance tech platforms exceeded USD 3.1 billion. More than 2,800 fintech partnerships were formed globally to integrate risk modeling and AI-based underwriting systems. In Singapore, government co-funded credit insurance premiums for over 38,000 SMEs in 2024, creating a policy adoption rise of 35% year-on-year.

Digital automation tools attracted over USD 1.2 billion in venture capital for small insurers. Europe alone witnessed over 600 new insurtech launches since 2022, many focused on policy management and claims processing. New trade finance funds offering bundled credit insurance attracted more than 1,900 investors, with average transaction volumes of USD 85 million per fund.

In Asia-Pacific, credit insurance is gaining momentum through mobile-first approaches, where over 3.6 million policies were sold via digital wallets. Credit insurers in India and Indonesia invested USD 200 million to develop AI scoring models to serve SMEs. These investment strategies aim to lower acquisition costs by 40% and improve policy retention rates by 18%.

New Product Development

Credit insurers introduced over 720 new policy variations between 2023 and 2024. Euler Hermes launched a modular policy builder in 2023 that attracted 14,000 users within the first 6 months. Atradius introduced an AI-powered instant decision tool, reducing underwriting time from 3 days to 3 minutes for eligible applicants.

In Q4 2023, Sinosure launched a currency-risk linked product that automatically adjusted policy coverage based on daily FX rate fluctuations, particularly for Chinese exporters to volatile economies. Zurich piloted its “ESG-linked Credit Insurance” in 2024, where over 2,000 companies with ESG ratings above A+ received premium discounts.

Coface introduced a digital-only plan for micro-exporters with turnovers below USD 1 million. It received 7,800 applications in its first quarter. The trend toward micro-insurance products allows broader market coverage and encourages policy adoption in Tier II and Tier III cities globally.

Five Recent Developments

Atradius: launched its blockchain-based claim tracker in Q2 2024, processing over 32,000 claims with real-time transparency.
Euler Hermes: expanded to 12 new African countries, adding over 40,000 new clients between Q3 2023 and Q1 2024.
Zurich: invested USD 480 million in an AI underwriting lab in Switzerland in 2023.
Coface: acquired two regional insurers in Southeast Asia, expanding its customer base by 18% in 2024.
Sinosure: signed a government partnership to underwrite trade deals worth USD 76 billion in Latin America by Q4 2024.

Report Coverage of Credit Insurance Market

The credit insurance market report covers more than 67 countries and evaluates over 15 industry verticals, including automotive, energy, electronics, and consumer goods. The report includes 340 tables and 210 charts illustrating policy issuance trends, claim volumes, and risk modeling benchmarks. It dissects data by company size, buyer turnover, and trade type. Over 1,200 market participants were surveyed, and over 9.3 million policy transaction data points were analyzed.

Coverage also includes pricing models, default probabilities by sector, and detailed SWOT analyses of eight major credit insurers. The report maps digital transformation strategies of insurers and assesses 180 insurtechs disrupting the market. Special attention is given to SMEs, which represent over 47% of total new policies. Risk scoring methodologies are benchmarked across 38 credit insurance firms.

Additionally, the report offers risk-adjusted loss ratios by region, including historical comparisons from 2018 to 2024. Over 110 pages are dedicated to regulatory impacts, including Basel III and Solvency II implications. With a database exceeding 6 terabytes, this report remains the most data-rich resource in the credit insurance industry.