The members of the International Credit Insurance & Surety Association (ICISA) reported member new business growth in 2013 was negatively influenced by the ongoing economic and political conditions in parts of the world. ICISA members however expect an overall positive growth outlook for 2014.
The claims picture in 2013 differs per country with average claims size decreasing in Western Europe, NAFTA and Brazil, while the average claim size was larger in Asia, Northern Europe, Spain and Portugal. Claims frequency increased in the Nordic region, Germany, Latin America and the NAFTA region. In other markets the number of claims was less intensive”, Andreas Tesch, Vice-President of ICISA explains.
The level of insolvencies in some key markets is high and claims are expected to rise as a result. Tesch notes that “currently the trend in insolvencies shows an increase in most European countries, as well as in some Latin markets. Decreasing insolvencies are reported for some EU countries such as Austria, Denmark, Germany, Hungary, Ireland, Latvia, Romania and the UK, and for main markets in Asia, North America, South Africa and Russia”.
Tesch is positive about 2014. “The outlook for 2014 in general is positive supported by increased sales, in spite of a fragile recovery. Lack of government spending is seen as a concern for stable growth, particularly in the EU. Growth is expected primarily in Asia, NAFTA (mainly the US), Southern, Central and Eastern Europe, Latin America and Russia”.
About ICISA: The International Credit Insurance & Surety Association (ICISA) brings together the world’s leading companies that provide trade credit insurance and/or surety bonds. Founded in 1928 as the first credit insurance association, ICISA has currently 50 members in total. The trade credit insurance members account for over 95% of the world’s trade credit insurance business. Today, with over USD 2 trillion in trade receivables insured and billions of dollars worth of construction, services and infrastructure guaranteed, ICISA members play a central role in facilitating trade and economic development on all five continents and practically every country in the world.
Source: ICISA Newsletter: ICISA – PRESS RELEASE – OUTLOOK 2014 (FEBR2014)