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Survey Report

Credit and Political Risk Insurance Capacity Survey and Market Update 2023

By Emma Coffin | March 6, 2023

The 2023 Credit and Political Risk Insurance (CPRI) survey shows a growth in capacity. Behind the headlines, our survey gives a detailed view of notional maximum line sizes and tenors available per transaction across the principal CPRI products.
Credit, Political Risk and Terrorism
Ukraine crisis|Geopolitical Risk

The current global outlook is one of instability. Geopolitical tensions remain high, with the Russia/Ukraine conflict continuing to cause an impact around the world. The global economy is facing rising inflation, higher interest rates and reduced investment, and our governments are experiencing high debt levels. The World Bank estimates growth in advanced economies is projected to slow from 2.5% in 2022 to 0.5% in 2023, triggering fears of a global recession1. According to International Monetary Fund Managing Director Kristalina Georgiev, one third of the global economy could be hit by recession this year and the world faces a tougher year in 2023 than the previous 12 months2.

Against this background of political and economic uncertainty, our annual survey of the credit and political risk insurance (CPRI) market shows that there is more capacity available than ever before. Notional maximum capacity has increased across the board, demonstrating resilience and depth in the CPRI market.

Insights from WTW’s in-house broking platform (which records data across the company from enquiry stage through to policy expiry, providing a global view of all our trading activities) show an uptick in new enquiry submissions last year. When compared to the previous year, the platform saw 26% more submissions.

Our data also shows that requests for credit risk insurance now outweigh contract frustration insurance enquiries; in 2022, more than 60% of transactions were transactional credit. Our records also indicate that our top two country exposures were the U.S. and U.K. Both of these factors reflect a shift in demand towards risks in developed economies.

Further highlights from our latest survey include the rising interest in renewables and ESG (environmental, social and governance), and the increase in capacity available for longer transactions, especially around 15 years.

If you’d like to find out how you can take greater advantage of current market capacity, or require further detail on the insurer appetite and capabilities highlighted in this report, please don’t hesitate to contact us.

Footnotes

1 World Bank, January 10, 2023 ‘Sharp Long-Lasting Slowdown to Hit Developing Countries Hard
2 Financial Times, January 1, 2023 ‘Recession will hit a third of the world'

Disclaimer

This data has been compiled as a guide only and is based on information provided to us by our most used CPR insurers. Actual availability will depend on a number of factors and will vary depending on the needs, time of placement, location and circumstances of individual clients.

WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.

Contacts

Head of Broking, Financial Solutions
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Fabien Conderanne
Regional Head of Financial Solutions, Europe 
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Regional Head of Financial Solutions, Asia Pacific
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Viviana Cardenas
Regional Leader Latin America, Surety and Financial Solutions
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Eva Fredriksson
Head of Financial Institutions US, Financial Solutions
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