Trade credit is evolving – Allianz Trade Americas’ Murrow

Trade credit insurers have grown their exposure in recent years, yet premium growth has stayed subdued.

For Sarah Murrow, who has taken over as president and CEO of Allianz Trade Americas after four-and-a-half years leading its UK and Ireland business, the explanation lies in the pressures facing clients.

“We are seeing an increased interest from new types of businesses and financial institutions,” she says.

“But companies are facing so many challenges with cost pressures, tariffs and margins that a discretionary spend like credit insurance is often behind more immediate concerns.”

Figures from the International Credit Insurance & Surety Association show in 2024, insured exposure for trade credit insurers grew by 7.5% to €3.5trn, yet premiums written fell 0.6% to €9bn.

Murrow says: “We are seeing an increase in exposure, but overall written premiums are not increasing as significantly as you might expect.”

Market changes

Despite geopolitical volatility and tariff concerns, Murrow describes the current environment as “still a soft market”.

“There has been an influx of additional insurers providing capacity in credit insurance markets globally.

“That creates more supply, which drives a softer market. We’ve also been operating in a relatively normal claims environment, without major insolvencies or high claims ratios that would tip insurers into a hard market.”

Much of the new capacity is focused on political risk and structured credit rather than the “whole turnover” trade credit segment dominated by Allianz Trade, Coface, and Atradius.

“Those entrants don’t have the infrastructure or risk databases to write hundreds of credit limits for a client,” Murrow says.

While overall premium growth is muted, Murrow pointed to new customer segments emerging, particularly in tariff-exposed sectors.

“Tariffs have renewed interest in the more exposed sectors – for example, Canadian businesses selling into the US. The bigger shift is a renewed interest in managing credit risk in companies’ supply chains, not just in their customer base.”

Allianz Trade’s data and credit intelligence allows it to fi lter risk by subsector or export market, identifying potential trouble spots even before tariffs take full effect.

“Slow payment is a really good leading indicator of problems to come. With more than 75,000 clients globally reporting when their customers are not paying promptly, we can spot emerging risks before they show up in the financials.”

Emerging markets also offer growth opportunities, with Brazil a key focus for both trade credit insurance and surety.

“Surety in Brazil is growing even faster than credit insurance, reflecting investment in infrastructure,” she says. “It’s a great growth market, but it can also be volatile. Every few years there’s a major claim – the most recent was the Americanas insolvency, which was a significant industry event.”

Tool for growth

Murrow stresses that credit insurance is not just about cushioning against losses.

“It’s very much a risk mitigation tool, but it can also help clients grow,” she says. “In a competitive market, it allows businesses to enter new markets, work with new customers, and offer credit terms they might not otherwise be comfortable with.”

Allianz Trade’s economic research team forecasts muted global growth of just 2.5% in 2025, with no sharp rebound expected in 2026.

“Businesses will continue to be challenged with risk, which credit insurance can help with,” Murrow says. “But they’ll also be challenged to grow – and that’s another area where credit insurance can be a great help.”

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