You may have seen the term trade credit insurance in the financial news lately, and here’s the reason why: A report was recently released by Grand View Research Inc, stating that the global trade credit insurance market is anticipated to reach a whopping $22.13 billion USD by 2030.
What exactly is Trade Credit Insurance?
Trade credit insurance is commonly used by businesses who export goods or services, and want to protect their cash flow. For example, an international customer’s ability to pay could be hindered by political unrest, blocked funds, or even bankruptcy, and having insurance can alleviate these concerns.
So, why the wild market growth?
Over the course of the pandemic, many governments closed international borders, marketplaces, and other public areas. This had a negative impact on international finances, causing numerous well-known businesses to file for bankruptcy. The global market was also badly impacted by the supply chain disruption, which significantly decreased demand for (and therefore sales of) trade credit insurance.
But, now that we’re out of the pandemic, import and export trades worldwide are bouncing back, all at the same time. This, coupled with uncertainty and the increased prevalence of non-payment fraud, are all contributing factors to its projected growth.
Learn more: https://gsabroker.com/trade-credit-insurance-a-primer/
