Introduction
Australia’s trade credit insurance (TCI) market is showing renewed momentum, supported by improved underwriting confidence, increased product availability and a growing recognition of trade credit insurance as a strategic risk management tool.
In a recent feature with (Re)in Asia our expert Amanda Best shared insights into how the market is evolving and what this means for businesses seeking protection against customer insolvency and payment default.
The conversation highlights a market that is becoming increasingly dynamic, with insurers demonstrating greater willingness to deploy capacity while maintaining disciplined underwriting practices.
A more competitive and policyholder-friendly environment
Following several years of tightening conditions, policy structures are becoming more favourable for policyholders.
As Amanda explains: “Policy terms have become noticeably more policyholder-friendly, with lower deductibles now more common and a growing number of policies offering higher indemnity levels.”
This shift reflects stronger insurer confidence as economic conditions stabilise and credit risk visibility improves. At the same time, insurers continue to maintain careful underwriting discipline, ensuring that capacity is deployed in a structured and sustainable way.
What’s driving the shift in the market?
Several structural trends are shaping the current trade credit insurance landscape in Australia.
Key developments include:
Greater emphasis on multi-year arrangements, helping clients secure longer-term stability and pricing certainty
Increased availability of SME-focused products, improving access to cover for smaller businesses
More selective underwriting discipline, ensuring risk is carefully evaluated
Structured risk conversations between insurers and brokers, supporting more strategic credit risk management
These developments highlight how the role of trade credit insurance is evolving beyond a traditional insurance purchase.
From balance sheet protection to strategic risk management
Trade credit insurance is increasingly viewed as a strategic tool that enables businesses to confidently extend credit, manage counterparty risk and support growth.
As Amanda notes, insurers are engaging more closely with brokers and clients to understand business models, supply chains and credit exposures. This deeper collaboration is enabling more tailored solutions and helping businesses navigate an environment where economic volatility and global trade dynamics continue to influence credit risk.
The result is a market that is not only recovering but maturing - moving beyond simple protection against non-payment to become an integral component of broader risk management and trade strategy.
Explore the latest market insights
This interview forms part of Lockton’s broader analysis of the evolving trade credit insurance market.
For a deeper dive into market conditions, insurer appetite and key trends shaping the sector, read our latest Trade Credit Insurance Market Update February Edition (opens a new window).
To read the full interview with Amanda and other industry experts, download the PDF version available on the right-hand side (desktop) or below (mobile).
The contents of this publication are provided for general information only. Lockton arranges the insurance and is not the insurer. While the content contributors have taken reasonable care in compiling the information presented, we do not warrant that the information is correct. The contents of this publication are not intended as a legal commentary or advice and should not be relied on in that way. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content in this publication.
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