Insurance Marketplace Realities 2025 – Trade credit

Rate predictions: Trade credit

Trend	Range
	-5% to flat

• On a macroeconomic level, business bankruptcies have continued to climb quarter over quarter since Q2 of 2022.
• This increase has led to a 40% increase in insolvencies for the 12 months ending March 31, 2024.
• Leading insurers have reported double-digit percentage increases in both the number and dollar amounts of claims filed.
• Despite this increase in claim activity, pricing continues to be aggressive for new insureds entering the market.
• Financial institutions are employing trade credit to enhance financing facilities to strengthen competitive opportunities.
• Financial institution-based indications from insurers remain exceptionally competitive with aggressive pricing and risk acceptance.
• Policy innovation and technology offerings in trade credit are broadening, providing greater tools to the credit management and risk teams.

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