Low double-digit growth expected for trade credit, political risk insurance

Singapore

THE trade credit and political risk insurance market is expected to grow in the low double digits in the next two years before resuming high double- digit growths, as businesses move to hedge their risks because of deteriorating risk profiles of various sectors and rising insolvency in this part of the world.

In addition, growth in the sector will be driven by a need for capital adequacy and exposure management by banks, growing awareness of the products which are available in the market, as well as innovation and flexibility by both brokers and underwriters in structuring deals to respond to client demands.

What's more, this growth is expected even as combined loss ratios, a gauge of profitability for some insurers in the Asia-Pacific region, are projected to hit 100 per cent i…