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Survey Report

Insurance Marketplace Realities 2024 Spring Update – Trade credit

May 8, 2024

Economists continue to predict an economic slowdown for North America; however, the U.S. has shown much resilience in staving off any material decline.
Credit and Political Risk
Rate predictions: Trade credit
Trend Range
Flat to +5%

Insurers see less new business activity from traditional purchasers.

  • Soft market pricing and appetite continue to dominate as applications have slowed and losses are low.
  • Trade credit is a discretionary spend and becomes one of the first casualties as companies cut expenses.
  • The lack of awareness of this key tool remains a major obstacle for growth.

Bank-driven programs remain the growth engine.

  • Bank-driven programs continue to drive growth and provide insurers with exceptionally low loss experience.
  • In trade finance, insurers have been open to offering groundbreaking innovation on policy language and structural offerings. It will only be a matter of time for these policy and structural innovations to move to the corporate sector.

The cost of capital is becoming a key factor in rate development.

  • The increased cost of capital for U.S. financial institutions directly impacts the cost of capital for trade credit insurers.
  • Insurers need to develop new models to better manage their capital while effectively servicing their clients.
  • Low loss levels over the past 10+ years have led to a pricing floor based on capital return models.


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).


Haydn Morris
Head of New Business – USA
Political & Credit Risks, Financial Solutions

Salvatore Garry
Head of Trade Credit North America
Financial Solutions

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