Trade Credit Insurance Market Regional Analysis

With the highest market share, the European trade credit insurance industry topped the list in 2024 and is expected to remain on top during the forecast period. The presence of influential market players, extensive application of advanced risk evaluation technology, and strong trade-supporting regulatory systems all contribute to the success of the region. Market growth is also supported by favorable government incentives, including fiscal support and protection programs. Globally, trade credit insurance has become increasingly a tool with which firms financially protect and expand their operations as they tap into the offering to lower credit risk, secure payment, and react to the uncertain economics.

The growing demand for product protection from many businesses from payment defaults would dominate the United Kingdom market and would accelerate to growth with a high CAGR of 11.3% during forecast period. According to Allianz Trade's economic report, fiscal support from the government assisted about 4,300 businesses between 2022 and 2023, with trade credit insurance, that is playing an important role in the regional market growth. Also, in the wake of post-Brexit realignment and changing trade regulations in the U.K., businesses are now looking for solutions to credit risks. Trade credit insurance is expected to play a greater role in supporting business expansion and financial stability as more individuals recognize its benefits.

The North American trade credit insurance market is expected to grow substantially between 2025 and 2032 as more businesses understand the significance of trade credit insurance in mitigating credit risk. Firms are increasingly resorting to trade credit insurance due to supply chain collapse, international trade tensions, and economic instability that have heightened the need for financial protection. US and Canadian sales of accounts receivable protection insurance and company continuity assurance are on the increase. In reaction to an increase in trade volatility and company bankruptcies, North American insurers are offering innovative solutions to assist companies in managing risk, maintaining cash flow, and ensuring long-term financial health.

Owing to expanding economies and an increased demand for financing mechanisms, the Asia Pacific trade credit insurance market will grow at the fastest compound annual growth rate (CAGR) during the forecast period. The trading scenario within the region is evolving rapidly, and firms are employing credit insurance to manage risks and secure transactions. To support Asian financial institutions in the region, the Asian Development Bank (ADB) established an August 2022 USD 1 billion co-financing capability with five multilateral insurers. Trade credit insurance is increasingly indispensable as globalization and cross-border business expand, enabling Asia Pacific business to operate confidently and with stability.

From 2025 to 2032, the development of an improved trade credit insurance market in Middle East and Africa (MEA) countries would be critically dependent upon increased digitization and establishment of a strong Export Credit Agency. The acceptance of credit insurance as a risk mitigator from financial risks is gaining a foothold among the middle eastern companies, especially in sectors, such as manufacturing, construction, and energy. Cumulative increase in trade in Africa highlights the necessity of a preventive approach towards the risk of non-payment. The government-initiated programs and financial reforms undertaking economic expansion allow trade credit insurance to be an efficient tool for businesses' survival and payment in an evolving economic landscape.