Trade Credit Insurance Demand Grows as Global Uncertainty Persists

Rising Demand in Key Sectors

As global trade tensions and tariff policies continue to fluctuate, companies across various industries are increasingly seeking ways to protect their business transactions. Sectors such as food, transportation, and steel are among those experiencing heightened interest in trade credit insurance. For example, Allianz Trade has reported a notable 59% increase in its Canadian insurance pipeline since March 2025, reflecting growing awareness of the benefits such coverage can offer.

How Trade Credit Insurance Can Help

Trade credit insurance can provide a safety net for businesses that rely on open account terms, helping to shield them from the risk of non-payment by buyers. In times of economic and geopolitical uncertainty, this type of coverage may help companies manage cash flow and maintain confidence in their trading relationships. By offering protection against buyer insolvency or protracted default, trade credit insurance can be a valuable tool for businesses navigating volatile markets.

Supporting Business Resilience

With ongoing uncertainty in global trade, companies may find that trade credit insurance helps to mitigate some of the risks associated with international transactions. While it cannot eliminate all risks, it can support business resilience by providing an added layer of security. This may be especially relevant for companies operating in sectors that are particularly sensitive to changes in trade policy or economic conditions.

Looking Forward

As demand for trade credit insurance continues to rise, brokers and insurers alike can expect to see more businesses exploring coverage options. The example of Allianz Trade’s recent growth in Canada highlights how trade credit insurance may be seen as an essential part of a comprehensive risk management strategy for companies facing an unpredictable global trade environment.

Source: https://www.creditinsurancenews.com/june2025cin

Disclaimer: This blog was written partially with the help of AI, and is for general informational purposes only and should not be construed as professional advice or relied upon as a substitute for legal, financial, or other professional advice.