The global trade credit insurance market saw a drop in both the number and value of claims in 2024, according to new data released by the Lloyd’s Market Association (LMA), the International Underwriting Association (IUA), and the London & International Insurance Brokers’ Association (LIIBA).
The annual survey, conducted by A2Z Risk Services, recorded 185 claims totalling more than US$400 million. This marked a decline of over US$100 million, or nearly 25%, compared to the previous year.
Despite ongoing risks, claims continued to be paid on time in almost all cases. Fewer than 1%, worth just US$3.9 million, missed the contractual payment deadline, and all valid claims were eventually settled.
Africa accounted for the bulk of reported claims, representing 71% of the total. Europe made up 14%, the Americas 10%, and Asia 5%.
Public sector claims dominated the dataset, comprising 72% of cases. However, because average claim values were lower, total payouts were more evenly split: 54% of claim value went to the public sector, while the private sector accounted for 46%.
The sectors with the highest claim values included support services for crop production, chemical and fertiliser mineral mining, water construction, road and motorway construction, and petroleum and natural gas extraction support.
Commenting on the findings, David Powell, head of technical underwriting at the LMA, said trade credit insurance continues to underpin global trade, particularly in regions with elevated infrastructure risk such as Africa.
“Even in these challenging environments, insurers continue to provide protection and to pay claims reliably when they occur,” Powell said.
Joe Shaw, director of claims at the IUA, said the cover not only mitigates payment risk but also enables business growth and access to finance.
“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,” he said.
