Moody’s Investor Service has published a report forecasting an increase in claims for trade credit insurers driven by an expected rise in the number of commercial insolvencies during 2024. However, it said the insurance sector was well-placed financially to absorb these losses and expected it to maintain underwriting discipline during the year.

The report stated: “Contrary to previous cycles, credit insurance prices have only fallen moderately in the last two years, despite a low level of claims. The average credit quality of credit insurance exposures, although gradually deteriorating, also remains high by historical standards. The sector's strong underwriting discipline makes it less vulnerable to shocks and was a key driver of our upgrades of the largest industry players in 2023.”