Insurers Respond to Growing Demand for Credit and Political Risk Insurance: Insights from the 2023 Global Survey

The global survey on credit and political risk insurance conducted by the IACPM and ITFA has revealed some interesting insights into the insurance market landscape. According to the survey, credit and political risk insurance continues to be a crucial tool for credit risk mitigation, ranking as the second most important market tool. This is further supported by the growth of the WTW insured portfolio by 25% in 2023.

Insurers are facing challenges such as elevated reinsurance rates and an ever-increasing risk landscape, prompting a market-wide flight to quality. Despite these challenges, the total capacity available for transactional credit insurance is on the rise, indicating a response to the growing demand for CPRI.

The survey also highlights a shift in focus towards more developed economies, away from emerging markets, due to fiscal constraints and the uncertainty surrounding these economies. The number of insurers in the CPRI space is growing year-on-year, with new entrants and managing general agents (MGA) entering the market.

As the insurance market becomes more competitive, insurers are specializing their offerings to focus on specific subsets of the market to retain market share and stay ahead of the competition. Overall, the report provides valuable insights into the current state of the insurance market and the trends shaping the CPRI space.