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Survey Report

Insurance Marketplace Realities 2023 – Trade credit

December 1, 2022

Insurers remain braced for higher claim activity. The combined stressors of the crisis in Ukraine, high inflation and looming recessionary environments have many trade credit insurance underwriters exercising caution.
Rate predictions: Trade credit
Trend Range
Better risks Neutral Flat
Poor risks Neutral increase +5% to +10%

For stronger risks, underwriters remain very competitive with buyer-friendly pricing and strong limit appetite.

  • Certain sectors are facing capacity issues even for good risks. A key example is the oil and gas sector, where both corporate clients and financial institutions are eager for trade credit protection.
  • For weaker risks, non-rated or poorly rated portfolios, we are seeing reduced limit appetite and pricing increases in the upper single digits. Buyers in certain industries — retail, for example — can expect similarly tougher conditions.
  • Overall, strong underwriting results, high demand from both corporate clients and financial institutions, and new entrants to the trade credit insurance marketplace will allow the trade credit insurance marketplace to offer competitive rates and limits as carriers work to retain and grow market share.

The expected claim-driven marketplace hit hasn’t struck yet.

  • Insurers are advising the marketplace of their expectations for mounting claims and notifications of past-due accounts. Yet even as claims come in, insurers are indicating that combined ratios for 2022 will likely remain quite strong and show a strong underwriting result.

Banks are projecting significantly higher levels of credit insured accounts receivable funding.

  • Accounts receivable funding facilities could see a significant increase over the 2021 period.
  • This surge in such funding facilities will likely continue through H1 2023.


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 crisis. 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 crisis. 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 crisis 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.


Trade Credit and Political Risks

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