CRiON, the international credit insurer and independent broker – consultant, member of the AON Group, investigated in 41 countries throughout Western Europe, Central and Eastern Europe, Asia, Australia and the US what the current situation is and the future tendencies for the credit insurance market.



The results of the annual survey should be of interest to all market players as most of them are contemplating the same challenges.

Executive Summary


Local players dominated domestic markets

Until 1993, each country had its local credit insurer. Today however, Western Europe only counts three major groups: Euler Hermes, Atradius and Coface. As a result of the competition battle, premiums have decreased by 33% over the last 10 years.
Insurance companies have therefore started to set up daughter companies outside their national territories and a lot of local players disappeared through mergers and acquisitions.


New Challenges

The decrease in premium revenue has forced credit insurers to improve their operational efficiency by reducing staff, fine-tuning policy conditions and IT-structures, offering new products with added value, and by expanding their activities to new territories. These were to compensate the losses suffered on the old European continent and in the UK.
Credit Insurance Companies therefore hope to invoice 200 to 500% more in the new territories.


Eastern Europe

Eastern Europe did not turn out to be the promised land with high average premium rates. Premiums in Poland, for instance, have decreased by 70% over the last 4 years and are now at the same level as they are in the UK, whereas the actual risk in Poland is three times as high.
This region was for the last 5 years the battle zone for Credit Insurers.
Euler Hermes, Coface Eastern Europe and Atradius stand firm but it is to be expected that Eastern Europe will evolve slowly as the on accounts receivable is limited and competition is fierce.


Difficult Markets

Turkey also applies high premium rates but is a very high-risk country for credit insurers.
North America is a difficult market as companies show very little interest in the classic cover of trade credit risks.
In Turkey the market is dominated by the Turkish Eximbank and for North America we see an excess of loss constructions.


Attractive markets

Switzerland and Austria offer an attractive potential since premiums in these countries are currently about 50% above the European average.
Australia and New Zealand look promising as losses are limited and premiums are average.
As far as South America is concerned, Brazil and Chile seem to be the countries credit insurers need to turn to.
Some players like Prisma realises 44% of their turnover in Austria.
Moreover Austria is still viewed as the stepping stone to the Central and Eastern European markets.
For Switzerland the market situation is quite simple Winterthur is the major player.


Future Challenging markets

China, Japan, India, South Korea, Vietnam and Indonesia will present the major challenges for credit insurers over the years to come. These countries count very few local players implying that competition is very limited. The Big 3 have already tried to attack these markets but none of them has succeeded.
China and Japan are difficult because of the many government-imposed regulations. Joint ventures might offer a solution for these markets.
A current example of a joint-venture is Tokyo Marine and Atradius in Japan.


Attractive Markets

Switzerland and Austria offer an attractive potential since premiums in these countries are currently about 50% above the European average.
Australia and New Zealand look promising as losses are limited and premiums are average.
As far as South America is concerned, Brazil and Chile seem to be the countries credit insurers need to turn to.




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About the Authors

Jean-Louis Coppers, Managing Director of CRiON (since 1994) holds a degree in Law and Economics.

Ortwin Volcke, Marketing & Business Intelligence CRiON, has studied Political and Social Sciences as well as Marketing. He started his career in factoring and was between 1994 and 2004 the Commercial director and the Managing Director of NCM/Atradius Belgium.

Both are involved in credit insurance, political risks and credit management solutions for more than 20 years.