1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Trade Credit Insurance in South Africa

Trade Credit Insurance in South Africa

  • March 2014
  • -
  • Finaccord
  • -
  • 25 pages

Trade Credit Insurance in South Africa is a report about the market for trade credit cover in South Africa. In addition to documenting the development of the market value from 2009 to 2013, the report also divides it for the most recent year between four key segments: between small companies with an annual turnover of less than USD 5 million and larger companies with a turnover above this threshold; between single-risk and annual policies; between export and domestic trade credit insurance; and between protection acquired for political risks and cover bought for business risks.

These unique market splits are based in part on a survey of leading brokers of trade credit insurance in South Africa. This same survey also identifies the underwriters of this type of cover used by brokers on a regular basis, gives an input into Finaccord's estimates for the market shares of underwriters of trade credit insurance in South Africa, provides a basis for commentary surrounding distribution channels used for this type of policy, and informs Finaccord's forecasts for the market value through to 2017.

Key features of this report include:

- quantification of the market size for trade credit insurance in South Africa: how much is the market worth, how has it developed since 2009 and how does it break down into key segments?

- presentation of the actual or estimated market shares of underwriters of trade credit insurance in 2013 based on both the broker survey and other available data sources, plus identification of leading brokers of this type of cover;

- audit of the frequency of usage of underwriters by major brokers of trade credit insurance in South Africa: to what extent are competitors effectively challenging the main incumbent underwriters?

- availability of an accompanying PartnerBASE™ dataset that logs partnerships for trade credit insurance identified by Finaccord across a combined total of over 40 leading banks and major trade associations;

- forecasts for the market for trade credit insurance in South Africa and how it will split between domestic and export trade credit cover: what is this sector likely to look like in 2017?

Table Of Contents

Trade Credit Insurance in South Africa
0.0 EXECUTIVE SUMMARY 1
1.0 INTRODUCTION 3
What is this report about? 3
Rationale 3
Several factors underpin the rationale for the production of this study 3
There are several distribution channel options in addition to brokers 3
Globally, trade credit insurers cover over USD 2 trillion of commercial credit exposures 3
The report provides a standardised analysis of important metrics for trade credit insurance 4
Methodology 4
Research program 4
Market data analysis 5
Definitions 5
Trade credit insurance 5
Single-risk and annual policies 5
Export and domestic policies 5
Political and business risks 6
Premiums 6
Abbreviations 6
PartnerBASE 7
Finaccord 7
2.0 SOUTH AFRICA 9
Introduction 9
Market size, growth and segmentation 10
South Africa's trade credit insurance market edged up in every year between 2009 and 2013... 10
... although the trend for declining claims ratios up to 2012 is likely to have reversed in 2013 10
A substantial percentage of the total market value is attributable to small business customers 11
Most brokers of trade credit insurance do not intermediate single-risk policies... 12
... although all are active in export trade credit insurance for which an open market exists 13
The value of South African exports slumped in 2009 but has gradually recovered since then 14
A fairly well-established market exists for political risk cover in South Africa 15
Factoring as a complementary / substitute product 16
The value of South Africa's factoring market has moved up substantially in recent years 16
Underwriter market shares 17
CGIC remains a very clear market leader in South Africa… 17
... in spite of the acquisition-led entry of Coface in 2005 17
Underwriters at Lloyd's of London are used occasionally but only ever for trade-related political risk cover .. 19
Distribution channels 20
Cinque and Niche International Brokers are important players in trade credit insurance broking 20
A couple of banks intermediate trade credit policies but no trade associations do so 20
Future outlook 21
Export-related trade credit insurance is expected to outpace domestic risk cover up to 2017 21
3.0 APPENDIX 23
Brokers participating in the survey 23


List of Graphics / Tables


0.0 EXECUTIVE SUMMARY 1
Key market data for trade credit insurance in South Africa 2
1.0 INTRODUCTION 3
2.0 SOUTH AFRICA 9
Gross written premiums for trade credit insurance in South Africa, 2009 to 2013 10
Premium income paid by small companies with an annual turnover of less than USD 5 million as a
proportion of the total market for trade credit insurance in South Africa, 2013 11
Premium income paid for single-risk policies as a proportion of the total market for trade credit insurance
in South Africa, 2013 12
Premium income paid for export trade credit insurance as a proportion of the total market for trade credit
insurance in South Africa, 2013 13
Values of exports and imports and split of GDP by sector in South Africa, 2009 to 2013 14
Premium income paid for political risk cover as a proportion of the total market for export trade credit
insurance in South Africa, 2013 15
Total factoring market value in South Africa, 2008 to 2012 16
Estimated market shares of gross written premiums of trade credit insurance underwriters in South Africa,
2013 18
Frequency of usage of specific trade credit insurance underwriters by brokers in South Africa, 2013 19
Forecast gross written premiums for trade credit insurance in South Africa and the proportion due to
export trade credit insurance, 2017 21
Forecast segmentation of gross written premiums in South Africa between domestic and export trade
credit insurance, 2017 (table) 22
3.0 APPENDIX 23

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
International Risk & Payment Review (Online)

International Risk & Payment Review (Online)

  • $ 1600
  • Industry report
  • December 2016
  • by Dun and Bradstreet (Altares)

International Risk & Payment Review The International Risk & Payment Review is an invaluable monitoring tool providing detailed country assessment, which facilitates the management of ongoing business ...

Governance, Risk and Compliance – The Brazilian Insurance Industry

Governance, Risk and Compliance – The Brazilian Insurance Industry

  • $ 950
  • Industry report
  • November 2016
  • by Timetric

Synopsis Timetric’s 'Governance, Risk and Compliance – The Brazilian Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Brazil. It provides detailed ...

Personal Accident and Health Insurance in Brazil, Key Trends and Opportunities to 2020

Personal Accident and Health Insurance in Brazil, Key Trends and Opportunities to 2020

  • $ 1450
  • Industry report
  • September 2016
  • by Timetric

Synopsis Timetric’s 'Personal Accident and Health Insurance in Brazil Key Trends and Opportunities to 2020' report provides a detailed outlook by product category for the Brazilian life insurance segment, ...


ref:plp2014

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.