The global accounts receivable insurance market continued to grow in 2023. More precisely, it is returning to normal, which corresponds to the time before the pandemic. The overall market growth in the sector was 6% over the past year. It is indeed significantly less than the 18% sprint in 2022, but then the post-Covid boom and high inflation contributed to year-on-year growth.
Receivables insurance
The market for credit insurance continues to grow
5.8.2024
The latest study of the receivables insurance market was once again published by the world’s number one broker in the field of commercial risk, AU Group. He notes the Loss Ratio parameter, which is also at the pre-pandemic level for most insurance companies. Allianz Trade recorded the highest year-on-year growth, specifically by 5.2 percentage points to the current 55.2%. At the same time, volume growth slowed to 4.5% (versus 15% in 2022).
What is Loss Ratio? Loss ratio is a term used in the insurance industry and represents the ratio of losses to premiums received, i.e. the share of paid insurance benefits and costs for the liquidation of insurance events against the total earned premiums (given by the insurance company, in the relevant insurance industry or for a specific insurance product).
Globally, there is an increase in the number of insolvencies. What are the trends?
- Especially highly indebted companies experienced a deterioration in their financial situation. This is, among other things, a consequence of high interest rates in 2023.
- Among the most affected sectors are construction, real estate and retail.
- Intense activity in the area of receivables was recorded in Latin America, especially in connection with the insolvency of Americanas, a major retail chain in Brazil.
According to AU Group’s new accounts receivable insurance market study, what’s next to watch? It is a new trend related to the advent of artificial intelligence in the field of non-life insurance, especially in the form of immediate assessment of the creditworthiness of participants or automatic processing of repetitive tasks. World economic outlook for 2024 The world economy proved more resilient than expected in 2024. Most countries have avoided recession, but economic growth in advanced economies remains weak or stagnant. In the eurozone, minimal growth is expected in 2024, which is hampered by tighter credit conditions. It can be expected that this situation will have an impact on the economic results of credit insurance companies. The study also offers all essential information about individual insurance companies, including their current rating, geographic coverage and basic economic parameters for 2023.
- You will download a complete study of the business risk insurance market.
