CREDIT INSURANCE MARKET SET TO GROW FASTER IN US THAN EUROPE

The credit insurance market is expanding moderately in Europe, which accounts for 84% of the $4.2bn industry, but more rapidly in the US, which has 12% of the industry, according to Swiss Re’s latest Sigma study. It says that in Europe credit insurance premiums are expected to grow by between 5% and 7% a year over the next five years, driven by a rapid increase in exports. US premiums are forecast to continue growing at the 10% rate of recent years. In Eastern Europe, Asia and Latin America, says Swiss Re, credit insurance has great potential as a form of political risk insurance, as well as traditional credit risk cover. The report adds that rising European exports should raise demand for credit insurance and notes that “the Internet appears to be largely a benefit for credit insurers”.