Insurance Marketplace Realities 2026 – Trade credit

Key takeaway

Despite a more complex and uncertain macroeconomic backdrop, market conditions for insureds continue to remain favorable

• Major insurers continue to report double‑digit growth in both claim frequency and claim severity, reflecting lingering stress among highly leveraged sectors such as consumer goods, and certain industrial segments. Despite this growth in claim activity, insurer credit risk appetite and pricing remains strong.
• Despite elevated claim activity, pricing for new insureds entering the market remains highly competitive, with abundant insurer capacity and a strong appetite for well‑diversified portfolios. Rate movement expectations for 2026 remain in the ‑5% to flat range for attractive risks.
• Financial institutions are increasingly leveraging trade credit insurance to support lending growth, enhance capital efficiency and differentiate financing solutions in a slower‑growth environment.
• 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. Insurers are taking a conservative underwriting approach for single risk and supply chain finance reviews; largely due to recent high profile single risk losses.