LMA, IUA, and LIIBA report drop in trade credit insurance claims for 2024, with Africa leading totals

A new report recently released has highlighted a significant reduction in the number and value of trade credit insurance claims worldwide.

The data comes from an annual market survey conducted by A2Z Risk Services on behalf of the Lloyd’s Market Association (LMA), the International Underwriting Association (IUA), and the London & International Insurance Brokers’ Association (LIIBA)—three leading bodies representing the UK’s insurance and reinsurance market.

According to the findings, 185 trade credit claims were reported globally in 2024, amounting to just over US$400 million. This reflects a sharp decline in value of more than US$100 million compared to the previous year—a reduction of nearly 25%.

The report also found that insurers continued to settle claims with a high degree of reliability. Fewer than 1% of claims, worth a total of US$3.9 million, were paid later than the agreed contractual terms. Nevertheless, all valid claims were ultimately resolved and paid in full.

Geographically, Africa remained the primary source of trade credit claims, responsible for 71% of the global total. In comparison, the Americas accounted for 10%, Europe 14%, and Asia just 5%. This regional concentration once again reinforces Africa’s status as the most active market for trade credit insurers.

The data also revealed a clear imbalance between the public and private sectors. Public sector activity made up 72% of all claims, although the average claim size was generally smaller. As a result, the total value of payouts was more evenly split—54% of the overall amount paid went to public sector claims, while the remaining 46% covered private sector losses.

In terms of industry-specific losses, the highest-value claims came from sectors such as crop production support services, mineral and fertiliser mining, water infrastructure projects, road and motorway construction, and services supporting oil and gas extraction.

Despite the year-on-year decline in claims volume and value, the report suggests that the global trade credit insurance market remains stable and responsive, continuing to meet policyholder expectations across a broad range of sectors and geographies.

David Powell, Head of Technical Underwriting at the Lloyd’s Market Association, commented: “Trade credit insurance plays a crucial role in enabling global trade – giving exporters the confidence to invest in exporting goods and services and in backing large-scale infrastructure and construction projects.

“Worldwide, it provides a vital safety net to permit trade in goods and services. This is especially evident in regions like Africa, where infrastructure investment remains critical but comes with an increased level of risk.

“Even in these challenging environments, insurers continue to provide protection and to pay claims reliably when they occur.”

Joe Shaw, Director of Claims at the International Underwriting Association (IUA), added: “Trade credit insurance offers several advantages beyond simply protecting against non-payment. It facilitates business growth and improves access to financing.

“IUA member companies are prominently involved in providing such cover. The data from our latest survey clearly illustrates the reliability of their solutions, enabling businesses to extend credit with confidence, expand into new markets, and secure better financing terms.”

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