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Survey Report

Insurance Marketplace Realities 2024 – Trade credit

November 9, 2023

The North American trade credit market remains robust and highly competitive. Insurers continue to be pressured on their rates and overall capacity as new entrants push for market share.
Credit and Political Risk
N/A
Rate predictions: Trade credit
Trend Range
-5% to flat

Corporate Insolvencies are moving higher in 2023.

  • Corporate insolvencies in the U.S. in 2023 have now eclipsed the total number of corporate insolvencies for all of 2022.
  • Consumer discretionary spending sector leads with the most filings.
  • Industrial sector is also hit with the most and largest filings.

Premium rates are under pressure even with increased insolvencies.

  • New entrants into the market compete for quality programs.
  • While insolvencies are up, the underwriting profit remains, as insurers are doing a good job of managing risk for clients.

Bank-driven programs remain the biggest driver for growth.

  • Increased capital pressure leads to banks employing trade credit as a tool for regulatory capital relief.
  • Bank programs remain highly profitable in the supply chain finance space.

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).

Contact

Scott B. Ettien
Trade Credit & Political Risks

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