Trade credit insurance claims fell in number but rose in value in 2025, according to the latest annual survey from three leading London market bodies – a pattern that points to fewer but larger losses against a backdrop of elevated corporate insolvency risk.
The Lloyd’s Market Association (LMA), International Underwriting Association (IUA) and London & International Insurance Brokers’ Association (LIIBA) have published the results of their global trade credit insurance claims survey, conducted by A2Z Risk Services.
The survey showed that 136 claims were payable in 2025, down from 185 in 2024. However, the aggregate value of claims increased to US$438.5 million, an almost US$38 million year-on-year rise. Only three claims – just over 2% by number and around 3% by value – were paid after the contractual deadline.
Those delays were attributed to payment processing issues rather than disputes over coverage. A small number of claims were affected by sanctions-related clarifications, with insurers working to meet regulatory obligations where required.
Africa remained the largest source of claims by volume, accounting for 63% of all claims. Europe, however, generated the highest proportion of claims by value, representing more than one-third of total amounts paid. The Americas accounted for 13% of claims, while Asia represented 7%.
By sector, public-sector obligors continued to generate more claims by count, with 65% of claims arising from the public sector. Higher average claim values in the private sector meant that total payouts were skewed toward private risks: 67% of amounts paid went to the private sector, compared with 33% to the public sector.
“Trade credit insurance remains a vital enabler of global trade. While the number of claims fell in 2025, the increase in overall claim values underlines the importance of robust underwriting and long-term capacity to support complex transactions,” said David Powell (pictured, left), head of technical underwriting at the LMA. “The data also demonstrates the continued reliability of the market. Even where payments are delayed due to operational or regulatory complexity, insurers are working to ensure that valid claims are ultimately settled.”
The latest findings build on previous years’ surveys that have highlighted relatively low claim counts but significant aggregate payouts, particularly linked to emerging market exposures.
The shift toward fewer but higher-value claims suggests that underwriters are increasingly focused on larger, more complex transactions – including structured deals involving banks, sovereigns and large corporates – rather than a broad base of smaller single-buyer losses.
The regional split, with Africa dominating claim volumes and Europe leading by value, reflects where global trade credit insurers are currently deploying capacity: high numbers of public-sector and project-related exposures in Africa, and larger private-sector and financial institution risks in Europe.
Meanwhile, the strong record on timely claims payment is likely to remain important in regulatory and capital discussions, including debates over how trade credit insurance should be recognized in bank capital frameworks. Market participants have pointed to the survey series as evidence of a consistent claims track record on policies covering regulated financial institutions and major corporate buyers.
“Trade credit insurance supports economic growth by enabling exporters and lenders to extend credit with confidence and to access financing on better terms. The survey results once again show that the London market delivers dependable outcomes for policyholders across a wide range of geographies and sectors," said Joe Shaw (pictured, center), director of claims at the IUA.
The data underline both the growing importance of trade credit insurance in supporting trade and lending, and the need for careful structuring and documentation as sanctions and regulatory considerations become more prominent.
With corporate insolvencies expected to stay elevated in many regions and trade flows exposed to geopolitical and supply chain shocks, the London market’s ability to handle larger, more complex claims will remain a key point of scrutiny for banks, exporters and their insurers.
“For brokers and their clients, these findings reinforce the value of trade credit insurance as a practical risk management tool in an uncertain trading environment. While exposures are becoming larger and more complex, the survey shows that the market continues to respond consistently when claims arise, providing the certainty and reliability that people depend on," said Jacqueline Girow (pictured, right), executive director at LIIBA.
