Research

Marketplace Realities 2018: Trade credit

November 6, 2017

    The one thing

    The rise in substantial losses to the carriers is a new trend that may change pricing and capacity dynamics.
  • The retail sector continues to be very difficult for the trade credit market. The recent bankruptcy of Toys R Us will lead to tighter constraints on capacity with demand on the rise.
  • While Hurricanes Harvey, Irma and Maria do not directly impact trade credit, they may lead to an overall increase in reinsurance costs to the carriers, which may push pricing higher in 2018.
  • Trade credit insurance continues to support asset-based lending, receivables purchase programs and securitization wraps as companies monetize their receivables, and banks look to enhance their collateral and risk assumed.
  • Price prediction

    +5%
  • Large losses are impacting the carriers, and this will tighten their underwriting stances.