Trade Credit Insurance Industry is projected to witness a CAGR of 10.2% during the period 2023-2032. This growth can be attributed to the expansion of international trade activities.
Selbyville, Delaware, Aug. 29, 2023 (GLOBE NEWSWIRE) --
Trade Credit Insurance Market size is expected to be worth USD 23.9 billion by 2032. The rising R&D activities to facilitate product developments and improve competitiveness for trade insurance coverage to limit payment losses will prove favorable for the industry expansion.
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As per a recent Federal Trade Commission report, consumers reportedly lost over USD 5.8 billion to fraud in 2021. Of late, several companies are developing cutting-edge technologies for expanding their product portfolios and exploring new industry. The growing government support to businesses for assisting insurers in extending coverage to companies will drive the industry development.
Rising penetration in SMEs
Trade credit insurance market size from the SMEs segment is expected to witness an 11.2% CAGR from 2023-2032. The increase can be attributed to the rising assistance to SMEs to counter bad debts and insolvency of customers to decrease the financial impact of non-payment. The growing focus on limiting the risk of non-payment and improving cash flow management has steered the higher need for enhancing credibility with suppliers and customers. The burgeoning obligation for carefully assessing the credit risk exposure as well as working with reputable insurance providers.
Higher application scope in food & beverages
Trade credit insurance market share from the food & beverages end-use segment is projected to record USD 4.3 billion by 2032 due to the rising production, distribution, processing, and sale of food and beverage products worldwide. As per Statistics Sweden, the sales of food and beverages in 2021 reached SEK 334 billion, up by 2.9%. Trade credit insurance offers coverage to F&B businesses to limit the risk of non-payment by retailers or restaurants for safeguarding their cash flow and mitigating potential financial losses during buyer defaults or insolvency.
Asia Pacific to offer lucrative development opportunities
Asia Pacific held a sizable share of the trade credit insurance market and is poised to reach USD 8.2 billion by 2032 driven by the surging awareness of risk management strategies. The rise in business transactions and credit exposure has steered the higher importance of trade credit insurance for limiting payment defaults and insolvency risks. The robust economic expansion has further made way for mounting trade activities and commercial transactions. According to the Ministry of Commerce, the trade services exports in India reached US$ 206.09 billion in 2020-21 in comparison to US$ 213.19 billion in 2019-20. The rising development opportunities for insurers to promote secure and sustainable trade practices.