Protecting your business from unpaid invoices is crucial in today’s volatile markets. With global insolvencies up 30% and 25% of bankruptcies caused by customer defaults, trade credit insurance is a vital tool. This article identifies the top 5 trade credit insurers and how they help businesses across industries manage risks like supply chain disruptions, payment delays, and customer insolvencies.
Key Insights:
- Accounts Receivable Insurance (ARI): Custom policies for diverse industries, global network access, and proactive claims support.
- Allianz Trade: Monitors 83M businesses, offers flexible coverage, and strong global reach for multinational companies.
- Atradius: Deep expertise in sectors like energy and food, with modular policies and tailored solutions.
- Coface: Covers 195M companies globally, offers political risk coverage, and integrates advanced analytics.
- QBE Insurance: Flexible policies for SMEs and niche sectors, with a strong focus on early risk detection.
Quick Comparison:
| Insurer | Industry Focus | Coverage Options | Best For |
|---|---|---|---|
| ARI | Cross-industry specialization | Customized policies | Businesses needing tailored coverage |
| Allianz Trade | Tech, manufacturing, B2B | Whole turnover, selective | Tech-driven and e-commerce businesses |
| Atradius | Energy, food, chemicals | Modular, single buyer | Industry-specific knowledge needs |
| Coface | Manufacturing, retail | Political risk, turnover | Global operations and analytics |
| QBE Insurance | SMEs, energy, marine | Comprehensive, selective | Small to medium businesses |
Why it matters: Trade credit insurance not only protects cash flow but also enables businesses to expand confidently into new markets. Read on to explore how each insurer addresses specific risks and provides tailored solutions.
What To Consider When Choosing Credit Insurance
1. Accounts Receivable Insurance (ARI)
Accounts Receivable Insurance (ARI) plays a key role in helping businesses protect their financial stability, especially when accounts receivable often make up more than 40% of company assets. As a specialty broker operating in over a dozen U.S. markets, ARI focuses on safeguarding these critical assets with tailored solutions designed to address specific business risks.
Expertise Across Industries
ARI’s in-depth knowledge of industry-specific challenges enables them to support businesses operating in complex and high-risk environments. Whether it’s construction companies grappling with supply chain issues or tech firms adjusting to rapid market shifts, ARI understands the unique vulnerabilities that come with each sector.
Mike Libasci, President of International Fleet Sales, describes the impact of ARI’s services:
"Accounts receivable insurance has allowed us to take on customers and transactions we wouldn’t have felt comfortable taking on by ourselves… It has not only allowed my company to take on larger deals, but be more liberal in terms, and the result has gone straight to our bottom line."
Flexible Policy Options
One of ARI’s standout strengths is its ability to craft customized insurance policies that align with a business’s specific needs. This flexibility ensures companies can secure coverage for their entire accounts receivable portfolio, specific buyers, or even just a single high-value customer.
ARI also provides policies that address risks such as customer bankruptcy, extended payment defaults, and political disruptions. This tailored approach ensures businesses are protected against the risks that matter most to their operations.
Ori Ben-Amotz, CFO of Hadco, highlights how this flexibility enhances competitiveness:
"With accounts receivable insurance, we don’t have to ask for cash up front or payment on delivery, which makes us much more competitive. This is the tool we needed to take more market share from our competitors."
Global Reach and Resources
Through its role as the U.S. correspondent broker in the CREDEA network, ARI taps into international insurance markets to provide global coverage. Its partnerships with private trade credit insurers and Platinum Level status with EXIM Bank allow for faster underwriting and access to a wide range of coverage options.
As ARI Global notes:
"Membership in CREDEA allows ARI Global access to all markets around the world."
Risk Management and Claims Support
ARI doesn’t just provide insurance – it also helps businesses make smarter credit decisions. Their risk assessment services offer valuable insights into customer creditworthiness and market conditions, empowering companies to expand their client base while keeping risks in check.
When it comes to claims, ARI delivers hands-on support from the initial filing to resolution, ensuring businesses can recover quickly and efficiently. Considering that default or insolvency accounts for 25% of corporate bankruptcies, having a reliable partner in claims management is crucial.
In addition, ARI takes a proactive approach by addressing payment issues early, often resolving them before they escalate into formal claims. This strategy not only saves time and money but also helps preserve important customer relationships, avoiding the strain of adversarial collection efforts.
2. Allianz Trade
Allianz Trade stands out as a leader in trade credit insurance, serving 70,000 clients across the globe and holding an impressive AA rating.
Industry-Specific Expertise
With a network that monitors 83 million businesses worldwide, Allianz Trade offers detailed sector risk reports that dive into critical areas like demand, profitability, and liquidity. The company has a strong track record in the energy sector, providing tailored solutions to manage receivables risk in this often unpredictable market. Its risk consulting services extend to various sectors, including liability, property, natural resources, construction, marine, and cyber risks. By leveraging this extensive data, Allianz Trade crafts policies that address specific industry challenges.
Customizable Policy Options
Allianz Trade’s Corporate Advantage solution offers over 80 coverage options, giving businesses the flexibility to design policies that align with their unique risk profiles and operational needs. As the company describes it:
"Corporate Advantage is Allianz Trade’s core trade credit insurance solution for medium and large companies, designed to address the business challenges that are unique to your company, sector, and ambitions."
Premium costs generally run about $0.0025 per dollar of sales, though rates vary based on factors like industry type, annual revenue, bad debt history, internal credit procedures, and the creditworthiness of customers. These adaptable policies are backed by Allianz Trade’s deep understanding of risk.
Global Coverage Capabilities
Operating in over 50 countries with a team of 5,700 employees representing 80 nationalities, Allianz Trade offers extensive global reach. The company safeguards €1,131 billion in business transactions annually and tracks businesses across more than 160 countries to ensure comprehensive international trade coverage. Its World Program features a unified Master Agreement framework, adaptable both centrally and locally, to support multinational companies in managing risks across diverse regions. This global scope is essential for navigating the complexities of international trade.
"Our expertise in risk mitigation and finance positions us as trusted advisors, enabling businesses aspiring for global success to expand into international markets with confidence."
Additionally, Allianz Trade provides political risk insurance to further enhance its global offerings.
Risk Assessment and Claims Support
The combination of Allianz Trade’s global expertise and flexible policies delivers strong risk mitigation. For example, when a customer filed for bankruptcy and disputed receivables, the company acted swiftly to resolve the issue for EDPA.
"The Allianz Trade team made us feel so comfortable about the situation and confident that it would get resolved. When you are facing an enormous financial loss, having someone knowledgeable, supportive, and responsive in your corner can make all the difference. We are very, very happy with the service we received." – Alp Benadrete, Managing Partner in Charge of the Home Textile Division for EDPA
Beyond claims handling, Allianz Trade offers comprehensive risk assessments, helping businesses identify and address potential challenges before they escalate into costly problems.
3. Atradius
Atradius stands out in the world of trade credit insurance by offering customized solutions backed by nearly a century of experience and a global presence in over 50 countries. With a 95% customer retention rate, they’ve earned the trust of businesses by consistently delivering value. Atradius keeps a close watch on 245 million businesses worldwide, ensuring they stay ahead in risk management.
Industry-Specific Expertise
Atradius underwriters bring deep knowledge of industries like energy, chemicals, food, and beauty. Their Global team combines geopolitical insights with an understanding of sector-specific challenges, helping businesses navigate complex markets.
This expertise isn’t just theoretical – it’s practical. Companies like EnCom Polymers, L’Oréal Hong Kong, and Metalco Inc. have used Atradius’s insights to expand opportunities in their respective fields of chemicals, beauty, and metals. By tailoring policies to align with unique trade risks, Atradius ensures businesses are well-prepared for industry-specific challenges.
Customizable Policy Options
Atradius offers flexibility through its Modula solution, a policy framework that allows businesses to mix and match modules to meet their specific needs. This approach enables companies to craft detailed, personalized policies that address their unique trade exposures.
Coverage options are diverse and include:
- Whole turnover policies with tailored terms
- Multi-buyer excess of loss coverage
- Single buyer cover
- Specialized support for trade financiers
For businesses facing unique risks, Atradius Credit Specialties provides Single Situation Cover, designed to adapt to shifting economic and geopolitical conditions.
"In the realm of insurance, finding the perfect fit for your business needs can be challenging. However, with Credit Specialties, we offer policyholders a unique blend of expertise and flexibility, providing the best of both worlds."
This flexibility is matched by Atradius’s extensive global reach.
Global Coverage Capabilities
Atradius Global focuses on supporting multinational companies with a team strategically located in major hubs like London, Paris, New York, and Singapore. This ensures localized support that aligns with the global footprint of their clients. For example, when working with Ingram Micro, a multinational technology company, Atradius structured its services to match the scale and locations of Ingram Micro’s offices worldwide.
Their multilingual underwriters ensure clarity across borders, while Atradius Collections provides professional invoice collection services, no matter the country, time zone, currency, or language.
"When it comes to managing risk, the needs of multinationals are unlike any other. We understand what it means to operate from a range of different locations and manage global fluctuations in trade." – Martie Van Velsen, Atradius Global Director
Risk Assessment and Claims Support
Atradius takes a comprehensive approach to trade finance, covering complex risks such as non-honoring of Letters of Credit and non-delivery of pre-paid goods. Their global support network ensures businesses have access to localized expertise wherever they operate.
The high customer retention rate speaks volumes about their service quality. Clients like LG Electronics Ltd have shared positive feedback:
"The relationship and service levels provided by Atradius are second to none. Atradius fully understands our business needs and requirements." – Credit Manager, Credit & AR, LG Electronics Ltd
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4. Coface
With a legacy spanning 75 years, Coface has become a global powerhouse in trade credit insurance, managing an impressive €685 billion (around $740 billion) in exposure across 100 countries. Combining deep industry expertise with cutting-edge technology, Coface makes 12,000 credit decisions daily while keeping tabs on over 195 million companies worldwide. This strong foundation allows it to deliver precise, industry-focused insights.
Industry-Specific Expertise
Coface’s risk assessment capabilities cover 162 countries and 13 business sectors, offering businesses a clear view of industry-specific challenges throughout the year. A skilled team of economists, underwriters, and analysts provides specialized insights for sectors like technology, retail, manufacturing, and cosmetics. Their expertise in economic research plays a critical role in helping businesses navigate unpredictable markets. And this is crucial – 25% of businesses fail due to customer non-payment.
In January 2023, Coface expanded its capabilities by acquiring Rel8ed, a North American data analytics firm. This acquisition brought advanced analytics and high-value data sets into the fold, sharpening Coface’s ability to monitor credit and supply chain risks.
Customizable Policy Options
Coface takes a tailored approach to insurance, moving away from generic, one-size-fits-all policies. Its flexible solutions can address unique needs, such as protection against extraordinary losses or political risks. A global cosmetics manufacturer praised this personalized service, saying:
"They treated us based on us. It really wasn’t cookie cutter and it was that engagement that led us to select Coface."
These customized policies cater to key industries like technology, retail, and manufacturing, with coverage options designed to adapt to specific risks and business growth strategies.
Global Coverage Capabilities
Coface’s extensive global network ensures comprehensive market coverage. With operations in 58 countries and support for customers in 200 markets, the company helps 100,000 businesses expand their reach. Its 5,200 employees work directly in 100 countries, offering local insights and managing export payment risks. Coface even provides seamless coverage for multinational clients’ subsidiaries under a single contract.
The scale is staggering: Coface insures €540 billion (about $583 billion) in trade receivables worldwide and offers coverage in 195 countries. This global reach equips businesses with the confidence to explore new markets while maintaining strong risk management.
Risk Assessment and Claims Support
Coface goes beyond insurance with tools like business information services and international debt collection. Its database of 200 million companies gives clients the insights they need to make smart credit decisions. Additionally, its global team of debt recovery specialists works across various legal systems to recover unpaid invoices effectively.
Cyrille Charbonnel, Group Underwriting Director, captures the essence of Coface’s approach:
"We can’t predict the future. But we can help you understand and analyze the risks associated with proper customer payment while guaranteeing you first-class protection. When you partner with Coface, you have access to all the qualified information and assessments you need to manage your credit decisions. This means you can offer competitive credit terms with complete confidence. Our solutions give you the peace of mind you need to develop your business: you minimize risks and open the door to new opportunities for growth!"
Coface also offers a digital platform, CofaNet Essentials, which simplifies risk management. This platform lets customers manage policies online, monitor risks in real time, and access up-to-date information about clients and trade partners, streamlining the entire process.
5. QBE Insurance
QBE Insurance offers trade credit solutions designed to protect businesses of all sizes from bad debt and payment defaults. Operating in over 170 countries, QBE ensures businesses are safeguarded when customers fail to pay for goods or services.
Industry-Specific Expertise
QBE takes a tailored approach to trade credit policies, crafting solutions that align with the unique needs of various industries. In Australia, for instance, they provide packages specifically designed for small businesses, ensuring coverage matches both the company’s size and its industry demands.
The company emphasizes the importance of credit protection, noting that 40% of current assets on an average balance sheet are tied to debts. To address this, QBE continuously evaluates buyer risks, acting as an early warning system to help businesses avoid unreliable debtors. As QBE explains:
"Part of the protection we offer is a continual assessment of buyer risks. This provides an effective early warning system, helping companies to avoid poor quality debtors, focus on building sales with better-rated clients, and improve overall business performance."
Additionally, QBE offers specialized products for financial institutions, covering various funding arrangements as long as there’s an underlying trade transaction involved.
Customizable Policy Options
QBE’s trade credit insurance is designed to meet the diverse needs of businesses, offering three main coverage options:
- Comprehensive Cover: Protects entire credit portfolios, including domestic and export customers.
- Excess of Loss Coverage: Ideal for businesses with strong internal credit management processes.
- Selective Coverage: Focused protection for key accounts or individual buyers.
Premiums are adjusted based on factors like turnover, debtor quality, and customer location. Larger businesses can benefit from bespoke products tailored to their specific needs.
For added flexibility, QBE allows businesses to "top up" existing coverage to a maximum of 100% of the primary policy, subject to agreement with the main carrier. This option enhances protection without requiring a complete overhaul of current insurance arrangements.
Global Coverage Capabilities
With a presence in key regions, QBE operates through three service centers that support its global reach. Their International Division includes European Operations and key Asian markets such as Hong Kong, Singapore, Malaysia, and Vietnam. For multinational organizations, QBE can issue policies through Lloyd’s of London, offering worldwide trade credit products.
QBE also runs specialist hubs for energy and marine sectors in London, Singapore, and the United States, catering to both domestic and global needs. Their Multinational Client Centre handles all aspects of international programs, from structuring policies to managing local compliance and day-to-day servicing.
As QBE notes:
"We understand that conducting Multinational business can be complex and that you require a trusted insurance partner who will keep you up to date with the ever changing landscape of Multinational insurance."
Their global network ensures seamless local policy administration, credit control, claims handling, and compliance across all territories.
Risk Assessment and Claims Support
In a challenging credit environment, QBE strengthens its offerings with integrated claims management and proactive risk assessment. Their trade credit insurance doesn’t just cover losses – it equips businesses with tools like credit monitoring and debtor alerts to minimize risks.
QBE protects against both insolvency and prolonged payment defaults for domestic and international trade. A Claims Relationship Manager is assigned to each client to ensure fast claims processing and minimal disruptions. For smaller claims, QBE offers a fast-track service, and policyholders can access discounted rates for commercial debt collection through STA International.
Their global claims approach provides a unified view of claims activity across regions, maintaining consistent service quality. This comprehensive system helps businesses stabilize cash flow and confidently grow their customer base.
Insurer Comparison Table
Finding the right trade credit insurer hinges on understanding your specific risk profile. Each of the top five insurers offers distinct advantages tailored to different business needs.
| Insurer | Primary Industry Focus | Coverage Options | Key Strengths | Best For |
|---|---|---|---|---|
| Accounts Receivable Insurance (ARI) | Cross-industry specialization | Customized policies, domestic & international coverage, risk assessments | Personalized solutions, global carrier network, dedicated broker support | Businesses needing tailored coverage across diverse industries |
| Allianz Trade | B2B e-commerce, technology, manufacturing | Whole turnover, selective coverage, digital payment solutions | Advanced technology integration, monitors 83 million businesses, high customer satisfaction | Tech-driven companies and e-commerce businesses |
| Atradius | Energy, food, automotive, chemicals | Comprehensive portfolios, excess of loss, key account protection | Deep industry expertise, specialized underwriters | Businesses requiring industry-specific knowledge |
| Coface | Manufacturing, retail, services | Whole turnover, single buyer, political risk coverage | Over 75 years of experience, global presence, integrated debt collection | Established companies with international operations |
| QBE Insurance | Small business, financial institutions, energy, marine | Comprehensive, excess of loss, selective coverage | Flexible policies, specialist sector hubs, global reach | Small to medium businesses and niche sectors |
This table highlights the unique strengths of each insurer, but understanding how these factors influence overall risk management is key.
Coverage Limits and Costs
Coverage limits and indemnity rates vary widely between insurers. Generally, indemnity rates range from 75% to 95% of outstanding debt, depending on the policy type and risk assessment. For most businesses, the cost of trade credit insurance remains affordable, typically under 1% of sales revenue. This makes it a cost-effective way to safeguard against financial risks.
Policy Flexibility and Risk Management
Each insurer structures policies to align with their target industries. Allianz Trade stands out with its "Allianz Trade pay" solution, specifically designed for B2B e-commerce, while other providers focus on customization for specific sectors.
Risk assessment is another area where insurers differentiate themselves. Allianz Trade, for instance, monitors 83 million businesses worldwide, offering unparalleled buyer intelligence. Atradius takes a more specialized approach, leveraging underwriters with expertise in industries like energy and food.
Claims Management and Customer Support
Claims management plays a crucial role in evaluating insurers. A notable example is Allianz Trade’s support for EDPA, a company facing bankruptcy due to unpaid invoices in March 2025. Alp Benadrete, Managing Partner of EDPA’s Home Textile Division, shared:
"The Allianz Trade team made us feel so comfortable about the situation and confident that it would get resolved. When you are facing an enormous financial loss, having someone knowledgeable, supportive, and responsive in your corner can make all the difference. We are very, very happy with the service we received."
Global Reach and Market Insights
The geographic reach of these insurers is another key factor. Coface, Atradius, and Allianz Trade collectively account for nearly 85% of the global credit insurance market, highlighting their extensive international presence.
The importance of trade credit insurance is underscored by the statistic that 25% of bankruptcies stem from unpaid invoices. With the U.S. trade credit insurance market valued at $2.02 billion in 2023 and projected to grow at a 10.6% CAGR through 2030, demand for these services continues to rise.
Conclusion
Selecting a trade credit insurer that truly understands your industry is a critical step in securing financial stability and fueling business growth. This decision isn’t just about comparing costs – it requires a deep understanding of your sector, adaptable coverage options, and efficient claims support.
The global trade credit insurance market reflects its importance, with insured exposure reaching 2.4 trillion euros worldwide in 2020. As Gary Lorimer, Head of Business Development for Aon Credit Solutions, puts it:
"It’s known as credit insurance, but it’s more opportunity protection."
This highlights why industry-specific knowledge is so essential when choosing an insurer. Without a clear understanding of your business and customer base, providers may fail to offer coverage that aligns with your unique risk profile. Brokers with expertise in multiple industries are key to navigating these complexities, offering tailored advice and multi-insurer options.
Partnering with a specialized broker like Accounts Receivable Insurance (ARI) provides a distinct edge. ARI delivers independent guidance across various providers, ensuring you find coverage that fits your needs. This approach often leads to better rates and policy terms compared to dealing with insurers directly.
Considering that accounts receivable can represent up to 40% of a company’s assets, working with a broker like ARI significantly strengthens your financial safety net. ARI’s customized policies and extensive global network enable businesses to address specific risks effectively. And with premiums typically costing less than 0.5% of turnover, this protection offers tremendous value for safeguarding a major portion of your assets.
From risk assessment to claims resolution, having dedicated support makes all the difference in building financial resilience. ARI’s expertise and global reach empower businesses to navigate uncertainties and seize growth opportunities with confidence.
FAQs
How can trade credit insurance help businesses manage risks like supply chain disruptions and customer non-payment?
Trade credit insurance acts as a financial safety net for businesses, shielding them from risks like customer non-payment, bankruptcy, or insolvency. With this protection, unpaid invoices won’t derail cash flow, allowing companies to stay financially steady and concentrate on growing their operations.
By insuring accounts receivable, businesses can extend credit to customers with greater confidence – even in unpredictable markets. Many policies also offer tools for risk assessment and credit management, enabling smarter decisions about customer relationships and credit limits. This can be particularly helpful for industries that face frequent supply chain challenges or economic swings.
What should businesses look for in a trade credit insurer to get the best coverage for their industry needs?
When choosing a trade credit insurer, it’s essential to find one that truly understands the risks specific to your industry and can provide coverage that fits your needs. Start by assessing your business’s unique factors – like the scale of your operations, the markets you operate in, and the level of credit exposure you face. This will help you narrow down insurers with relevant expertise in your sector.
It’s also important to look at the insurer’s reputation, how they handle claims, and the quality of their customer support. A dependable provider with a strong track record and responsive service can make a big difference when it matters most. Pay close attention to their coverage options, including policy limits and exclusions, and see if they offer tools like risk assessments or insights to help you navigate challenges. While pricing is a factor, focus on the overall value and flexibility of the policy to ensure it keeps pace with your business as it grows and evolves.
How do trade credit insurers like Allianz Trade and Coface support businesses in managing risks and expanding into international markets?
Trade credit insurers like Allianz Trade and Coface play a crucial role in supporting businesses as they venture into global markets. Allianz Trade offers detailed country risk assessments and market insights, helping companies navigate potential challenges in specific regions. Meanwhile, Coface provides tools such as UrbaA360, which analyzes the risk profiles of potential business partners, and credit evaluation services that assess the financial health of companies worldwide.
With these tools, businesses can make smarter decisions, safeguard themselves against non-payment risks, and confidently explore growth opportunities across international markets.
