RegionsLatin AmericaCredit Insurance and Surety Bond Demand Expected to Rise in Latin America

Credit Insurance and Surety Bond Demand Expected to Rise in Latin America

Latin American and global demand for trade credit insurance and surety bonds is expected to continue to rise in 2013 to reflect increasing trade flows, primarily from high-growth markets, according to a report from the International Credit Insurance & Surety Association (ICISA).

ICISA has 48 member companies from the global insurance and reinsurance sectors. Its executive director, Robert Nijhout, said that its members are still concerned about the reserved attitude of banks, but are “pleased with the increased level of interest for trade credit insurance and surety during the past year.”

He added that members experienced a deteriorating risk environment, with claims activity increasing in 2012. For the year ahead, they continue to anticipate growth for the trade credit insurance sector in Latin America, especially in Brazil.

However, ICISA vice president, Andreas Tesch, added that volatility in some parts of South America is a cause for concern in 2013 for the trade insurance market

In the surety bond market, ICISA members have expressed concern about the eurozone and the US but are more positive regarding the outlook in Latin America, some African countries, and fast-growing emerging economies in the Far East. “Demand will continue to rise in countries that were already successful in 2012,” said Nijhout.

A report issued by ICISA notes that “major resources and skilled underwriting are needed to meet the demand for surety bonds in the on-going poor conditions of the construction and transportation areas.”

Related Articles

LATAM economic activity hindered by political uncertainty

Latin America LATAM economic activity hindered by political uncertainty

2w Laura Noble
Mapfre signs up for responsible investment

EEA Mapfre signs up for responsible investment

1y Graham Buck
Drought stress testing tool launched for banks

Banking Drought stress testing tool launched for banks

1y Graham Buck
US executives are most bullish on economic growth

Asia Pacific US executives are most bullish on economic growth

1y Graham Buck
Startupbootcamp makes tracks for Latin America

Financial Services Startupbootcamp makes tracks for Latin America

1y GTNews
Latin America’s prospects and the Trump factor

Banking Latin America’s prospects and the Trump factor

1y Jose Luis Lopez-Sors
Quaero appoints Amancio Perez as head of Iberian sales

EEA Quaero appoints Amancio Perez as head of Iberian sales

1y GTNews
Latin America: will Trump undermine an improved business environment?

Economy Latin America: will Trump undermine an improved business environment?

1y Jimena Blanco