Demand for trade credit insurance and surety develops in line with improving economic conditions
The members of the International Credit Insurance & Surety Association met in Stockholm for their 76th annual general meeting, to share and discuss market and industry developments.
Among the main topics of discussion were developments in fintech, insurtech and blockchain, Basel III/IV and its potential effects on the co-operation with banks, threats imposed by looming trade restrictions and regulatory concerns.
This latest AGM marked the 90th anniversary of the association.
During the meeting the membership elected Patrice Luscan as their 41st President and Kay Scholz as vice president. Argo Surety, Credendo and Liberty Mutual were elected as members of the management committee, which also includes Atradius, Chubb, Coface, Euler Hermes and R+V Re.
ICISA is partnering with Offenburg University on an industry global data project. The aim is to give an annual estimate of the size of the trade credit insurance and surety markets, detailed by country or geographic area, sector and risk category.
The association also recently underwent organisational changes to increase its advocacy efforts, including the creation of a dedicated advocacy committee. The goal is to be in a better position to represent members’ interests to regulators and legislators on important regulations that affect them.
Patrice said: “Increased exposure and increased premium data point to a lower average premium rate, which is a result of the soft market, but does not reflect the worsening risk outlook. We expect higher growth in the coming year, thanks to this awareness of higher risk, and we are prepared to continue to support our policyholders.
“The state of the surety market has developed favourably following the economic trends and a recovering construction industry. This is reflected in strong underwriting results and modest claims ratios for most members.”
