The 60-Second Executive Brief: Trade Credit Insurance Market Update
Australian insolvencies are up 43% year-on-year, with construction, retail, and wholesale among the hardest-hit sectors. Insurers are tightening limits, demanding stronger financial disclosure, and becoming more selective in challenging industries.
In this environment, trade credit insurance has evolved beyond simple protection – it’s now a strategic lever for balance sheet resilience, working capital performance, and unlocking new growth opportunities.
Key market insights:
Selective Underwriting: capacity remains, but insurers are prioritising strong credit governance and sector resilience.
Data-Driven Confidence: timely financial information and credible disclosure are critical to securing better terms.
Alternative Structures: excess of loss and top-up layers can plug coverage gaps in high-demand sectors.
Funding Advantages: banks are increasingly rewarding insured receivables with improved lending terms.
Your FY25 advantage:
Aligning your credit risk strategy with insurer expectations is now a competitive edge. The right program can:
Extend credit safely to higher-risk or offshore customers
Strengthen cash flow and lender confidence
Safeguard margins by preventing insolvency-related write-offs
Download today:
Download the report today and equip your business to strengthen working capital (find the link on the right for desktop, or below for mobile).
Contents of this publication are provided for general information only. 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 on the basis of the content in this publication. Lockton arranges the insurance and is not the insurer. Any insurance cover is subject to the terms, conditions and exclusions of the policy. For full details refer to the specific policy wordings and/or Product Disclosure Statements available from Lockton on request.
