Global Credit Insurance Market
Global Credit Insurance Market Size By Component, By Enterprise Size, By Application, By Geography, Competitive Landscape And Forecast
According to Verified Market Research, The Global Credit Insurance Market was valued at USD 7,903.9 Million in 2016 and is projected to reach USD 10,175.8 Million by 2025, growing at a CAGR of 2.93% from 2017 to 2025.
Credit insurance can be defined as a commercial coverage against losses resultant of a failure of occupational mortgagors to pay their obligation to the insurer, usually due to liquidation. The coverage is geared to manufacturers, wholesalers, and service providers who may be dependent on a few accounts and therefore could lose substantial income in the event of a liquidation/insolvency. Credit insurance can be categorized as an insurance policy shielding a company in the event that it does not collect an unusually large amount of its accounts receivable. A company’s accounts receivable represents what it is owed on its credit sales. Every company that makes credit sales takes the risk that its customers will not or cannot pay what they owe. Credit insurance is deliberated as one way to reduce this risk. Credit insurance is the overlapping field of covering exporters against the risk they will not be paid for a range of reasons such as political upheaval or simply default.
The growing use of multiple distribution channels by insurers is paving way for the market of credit insurance to grow globally. As competition in insurance markets is intensifying, cost savings and customer retention have become critical, forcing insurers to look for ways to drive sales and customer convenience while keeping costs low and maintaining profitability. These factors are leading to the emergence of additional channels such as call centers, mobile, and web and the insurers now leverage these channels to directly communicate with customers and sell suitable insurance products. However, continued market volatility and lack of awareness about credit insurance are expected to hamper the growth of the market in the forecast period.
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