- Growth in global trade reflected in high exposure figures
- Increased demand for surety under soft market conditions
Trade credit insurance
- Total premium income decreased by -3.4% to €6 billion in a competitive market
- Claims paid or 2016 stands at a total sum of €2.9 billion
- Claims ratio 2016: 48.3% (2015: 50.4%)
- Insured exposure increased by +2%.
- Total insured exposure over 2016 was €2.3 trillion
- Premium increased by +13.7% to € 5 billion
- Claims decreased by -15.8%. Total claims paid over 2016 was €811 million
- Insured exposure increased by 5.4% to €460 billion
Discussions at the 75th Annual General Meeting of ICISA members
- Global economic and political developments, the risk environment and their effects on trade
- FinTech/ InsurTech developments: these are competitively sensitive and members agreed to monitor and review these at all future meetings
- Intensified contacts with peer organisations
- ICISA welcomed 6 new members in 2016 and 2017: Liberty Mutual (USA), Qatar Re (Switzerland), Travelers (USA), Aserta (Mexico), BTG Pactual (Brazil) and S2C (Italy)
The members of the International Credit Insurance & Surety Association (ICISA) met in Lisbon for their 75th Annual General Meeting to share and discuss market and industry developments. The meeting was attended by 95 delegates from 50 different companies from 29 countries.
President of ICISA, Jos Kroon, stated about the current trade environment: “The current global trade environment is developing in a positive way. However Brexit, protectionism, regional conflicts and other political developments in major economies potentially endanger this growth. Our members report an increase in insured exposure and as the risk appetite continuous to be high, market conditions remain advantageous for our insured clients.”
Trade Credit Insurance
“In a positive trade environment traders increasingly appreciate trade credit insurance cover for its forward looking ability. In most markets around the world, we see a decreasing tendency of premium levels. This shows a healthy competitive environment where our clients have alternatives to choose to cover their trade receivables.” Vice President Richard Wulff notes.
The surety members of ICISA report a strong overall decrease in claims over 2016 with an increase in written premium and in insured exposure. However results vary per company and depend partly on the state of recovery of leading sectors, such as construction and transport, which can differ per country. “The figures reflect that the market situation has improved for most surety members”, Jos Kroon, President of ICISA, explains.
Source: International Credit Insurance & Surety Association – www.icisa.org – firstname.lastname@example.org