JANUARY 30, 2023 08:42 AM (EST)
Best's Market Segment Report: Clouds on the Horizon For 2023, But Trade Credit Insurers Are in a Good Place
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Associate Director, Analytics
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|Richard Banks |
Director, Industry Research – EMEA
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Director, Market Development & Communications
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FOR IMMEDIATE RELEASE
LONDON - JANUARY 30, 2023 08:42 AM (EST)
Despite the Russia-Ukraine crisis, trade credit insurers are expected to report strong results for 2022. This builds on exceptional results during the COVID-19 pandemic, when unprecedented government support for the economy kept insolvencies unusually low, according to analysts at insurance credit rating agency AM Best.
A new Best’s Market Segment Report, “Clouds on the Horizon For 2023, But Trade Credit Insurers Are in a Good Place,” notes that claims ratios will likely increase in 2023, reflecting the effect of an increasingly difficult economic environment.
However, AM Best believes that the portfolio actions taken since 2020 put trade credit insurers in a good position to manage the economic downturn.
The magnitude of any deterioration in results will depend on how the economic environment develops in 2023. In the absence of a full-blown financial crisis, results should hold up well, supported by continued strong reserving.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=328356 .
For a video discussion about this market segment report with Mathilde Jakobsen, director, analytics, AM Best, please visit http://www.ambest.com/v.asp?v=ambtradecredit223 .
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.