Skip to main content
Survey Report

Insurance Marketplace Realities 2022 Spring Update – Trade credit

Credit, Political Risk and Terrorism
N/A

April 7, 2022

Insurers are anticipating higher claim activity for 2022. Whether this turns into a tsunami wave remains to be seen, but past-due filings have increased significantly, and insolvencies in certain geographies are on the rise.
Rate predictions: Trade credit
Trend Range
Better risks Neutral Flat
Poor risks Neutral increase Flat to +5%

Key takeaway

Insurers are anticipating higher claim activity for 2022. Whether this turns into a tsunami wave remains to be seen, but past-due filings have increased significantly, and insolvencies in certain geographies are on the rise. 

With war in Europe having global economic repercussions, insurers are closely watching the potential for trade disruption there and elsewhere.

  • Russia and Ukraine are obvious points of concern along with neighboring countries in the region.
  • Turkey is facing the devaluation of the lira.
  • Brazil’s upcoming elections are creating uncertainty.
  • K. insolvencies were up 33% at year-end 2021 compared to the year before.

The rate decreases we saw last fall are a thing of the past, though most buyers should see flat renewals in 2022.

  • Despite the anticipated claim increases, insurer appetites and limits are back to pre-pandemic levels, and this marketplace remains better for buyers than most P&C lines.
  • Sectors being closely watched are transportation, electronics, automotive suppliers and transport equipment.

Trade credit insurers are showing concern about non-bank supply chain finance.

  • Insurer underwriting guidelines for non-bank supply chain finance and other monetization programs continue to be restrictive.
  • A successful track record of at least three years will be necessary for many insurers to consider onboarding a non-bank client.

Disclaimer

Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Each applicable policy of insurance must be reviewed to determine the extent, if any, of coverage for losses relating to the Ukraine conflict. Coverage may vary depending on the jurisdiction and circumstances. For global client programs it is critical to consider all local operations and how policies may or may not include coverage relating to the Ukraine conflict. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal and/or other professional advisors. Some of the information in this publication may be compiled by third-party sources we consider reliable; however, we do not guarantee and are not responsible for the accuracy of such information. We assume no duty in contract, tort or otherwise in connection with this publication and expressly disclaim, to the fullest extent permitted by law, any liability in connection with this publication. Willis Towers Watson offers insurance-related services through its appropriately licensed entities in each jurisdiction in which it operates. -The Ukraine conflict is a rapidly evolving situation and changes are occurring frequently. Willis Towers Watson does not undertake to update the information included herein after the date of publication. Accordingly, readers should be aware that certain content may have changed since the date of this publication. Please reach out to the author or your Willis Towers Watson contact for more information.

Contact

Scott B. Ettien
Trade Credit and Political Risks

Contact Us