Insurance Marketplace Realities 2023 Spring Update – Trade credit

Rate predictions: Trade credit

	Trend	Range
Trade credit		+5% to +10%

• Loss ratios remain far too low for trade credit insurers, but we expect this to change as we head into a deeper recession in the second half of 2023.
• The bank crises demonstrate a macro impact to a fragile economy, which will lead to more corporate insolvencies.
• The flight to quality in the banking sector is leading to more insured supply chain finance programs.
• A higher focus by corporates on working capital financing needs is heading us into a potential prolonged recession.
• There is significant growth in the trade credit market over 2022 as more companies protect their receivables.

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