| Coverage | Trend | Range |
|---|---|---|
| Trade credit insurance |
|
-5% to flat |
| ProfitGuard credit risk monitoring |
|
0% to +5% |
Key takeaways
- Business bankruptcies and restructurings remain elevated, driving a 16% year-over-year increase in trade credit claims.
- Despite rising claims, insurer appetite remains strong as new market entrants continue to drive competition.
- New insureds continue to benefit from abundant capacity, strong appetite and competitive market conditions.
- Financial institutions are using trade credit insurance to support lending growth and improve capital efficiency.
Indications from insurers focused on financial institution portfolio submissions remain extremely competitive, characterized by aggressive pricing, broader policy terms and flexible approaches to risk selection for high‑quality counterparties. Portfolio submissions are on the rise, with insurers now looking at increased risk mitigation drivers within the portfolios at risk. Insurers remain conservative in their underwriting approach for single risk and supply chain finance reviews; largely due to recent high profile single risk losses.
Innovation in policy design, data analytics and real‑time credit monitoring continues to accelerate, enabling credit management and risk teams to respond more dynamically to rapidly changing buyer risk profiles. Insurers are also advising that the use of generative and agentic AI is allowing previously time consuming tasks to be completed with expediency, thus allowing for greater underwriting productivity.
ProfitGuard
Key takeaways
Evaluating the creditworthiness of customers and suppliers remains a key priority for organizations facing uneven economic conditions, evolving trade policies and varying levels of stress across sectors.
Several key observations have emerged from current market conditions:
- Bankruptcy and restructuring activity remains elevated, keeping default risk high for weaker borrowers.
- Demand for active credit monitoring remains strong as firms seek earlier visibility into emerging counterparty risks.
- Many monitored firms remain vulnerable to earnings pressure, refinancing risk and supply chain disruption.
- Trade credit risks remain highly company- and sector-specific, increasing the need for ongoing monitoring.
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).
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