The trade credit market is beginning to see positive conditions for new insureds, despite an increase in business bankruptcies and insolvencies.
Rate predictions: Trade credit
Trend
Range
Typical year-on-year rate movement
-5% to flat
Key takeaways
Despite challenging macroeconomic conditions, market conditions for new insureds remain favorable
On a macroeconomic scale, business bankruptcies have been rising steadily, quarter-over-quarter, since the second quarter of 2022
Major insurers are reporting double-digit percentage growth in both the number and total value of claims submitted
Despite the surge in claim activity, pricing for new insureds entering the market continues to remain highly competitive
Indications from insurers serving financial institutions remain extremely competitive, marked by aggressive rates and flexible risk acceptance
The effect of tariffs on the economy will hinge on final tariff levels and the objectives set by the U.S. administration, which should become clearer as initial bilateral agreements are reached with U.S. trading partners. The prevailing assumption is that some sector-specific tariffs may persist while others are negotiated away in exchange for reduced retaliation, commitments to purchase U.S. goods, quotas, or even geopolitical and currency-related agreements
Disclaimer
WTW hopes you found the general information provided here 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, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
Contact
Salvatore Garry
Head of Trade Credit – North America, Credit Risk Solutions, Risk Solutions
