The Lloyd’s Market Association, in partnership with the International Underwriting Association (IUA) and the London & International Insurance Brokers’ Association, has released findings from its latest annual global trade credit insurance claims survey, conducted by A2Z Risk Services.

According to the report, the 2024 trade credit insurance market experienced a notable decline in both the volume and value of claims. A total of 185 claims were reported, amounting to over US$400 million. This represents a reduction of more than US$100 million—nearly a 25% decrease in claim value compared to the previous year.

Despite the decline, Africa continues to dominate the claims landscape, accounting for 71% of all global trade credit claims. In contrast, the Americas made up 10%, Europe 14%, and Asia 5%.

The survey also revealed that claims are being paid consistently and on time, underscoring the reliability of trade credit insurance providers. Less than 1% of claims—worth only US$3.9 million—were delayed beyond the contractual deadline, and all valid claims were eventually settled.

Public sector entities were more prominent in the claims data, making up 72% of claims filed, though private sector claims had higher average values. In total, 54% of the claims paid went to the public sector, while 46% were paid to the private sector.

The report identified the top five sectors with the highest claim payouts, including:

  • Support activities for crop production

  • Mining of chemical and fertiliser minerals

  • Water construction projects

  • Construction of roads and motorways

  • Support activities for petroleum and natural gas extraction

“Trade credit insurance plays a crucial role in enabling global trade – giving exporters the confidence to invest in exporting goods and services and in backing large-scale infrastructure and construction projects. Worldwide, it provides a vital safety net to permit trade in goods and services. This is especially evident in regions like Africa, where infrastructure investment remains critical but comes with an increased level of risk,”
said David Powell, Head of Technical Underwriting at the Lloyd’s Market Association.

“Even in these challenging environments, insurers continue to provide protection and to pay claims reliably when they occur.”

“Trade credit insurance offers several advantages beyond simply protecting against non-payment. It facilitates business growth and improves access to financing. IUA member companies are prominently involved in providing such cover. The data from our latest survey clearly illustrates the reliability of their solutions, enabling businesses to extend credit with confidence, expand into new markets, and secure better financing terms,”
said Joe Shaw, Director of Claims at the International Underwriting Association (IUA).

This comprehensive 2024 insurance claims report highlights the resilience and effectiveness of trade credit insurance, particularly in emerging markets like Africa, where economic development is often linked to infrastructure projects and trade finance. As global businesses continue to navigate uncertainty, credit insurance coverage remains a vital tool for enabling secure international trade and risk mitigation.

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