Expert Insights: Navigating US Credit Insurance in 2025

Traditionally an underpenetrated market, credit insurance in the US is poised for growth this year against a changing economic and geopolitical backdrop. At the inaugural Tinubu Conference in January 2025, an expert panel convened to discuss ‘Navigating Credit Insurance in 2025: US Perspectives’. 

Here are their key takeaways on the challenges and drivers of market potential:

1. Economic resilience presents opportunity

Despite inflationary pressures, the robust US economy, characterised by strong employment rates and projected growth presents an opportunity for credit insurance expansion. Increased domestic consumption driven by rising wages creates more business opportunities and potentially uplifts demand for credit insurance.

2. New tariffs may increase local demand

New US tariffs have geopolitical implications that could boost domestic production, creating new opportunities for US businesses – in turn increasing the need for risk solutions like credit insurance that support reshored manufacturing operations.

3. Low awareness and regulatory restrictions are ongoing barriers

A significant barrier to market growth is the limited understanding of credit insurance among US businesses. Many businesses are not aware of its benefits in managing credit risk. US credit managers, who traditionally have a higher risk tolerance than their European counterparts, usually adopt other risk mitigation strategies. Regulatory restrictions also hinder growth, as US regulations are more restrictive compared to Europe and prevent banks from using credit insurance effectively. The industry is hopeful that ongoing advocacy efforts may result in regulatory reforms in favour of credit insurance.

4. Digital solutions will support industry growth

Given the evolving market conditions in the US, it is crucial for credit insurers to stay responsive, adjusting and expanding their operations to cater to increased needs. Supporting traditional risk assessment models with AI and digital credit insurance platforms will help insurers scale with streamlined processes and increased efficiency, and achieve greater transparency and lower operational costs, while enhancing the customer experience. Real-time risk quantification will help US credit insurers address emerging risks and unpredictable market dynamics, leading to improved credit risk assessments, and the ability to detect and respond earlier to fraud. Technology-driven claim management will be key to fostering confidence and growth within the US market. Through real-time monitoring, the use of alternative data and dynamic pricing, insurers can optimise their claim management processes and deliver a valuable service to customers.

5. Now is the time to build future foundations

Despite challenges, the future of credit insurance in the US looks positive. Regulatory reform, digitisation, and adaptability are key to capitalising on the current growing needs, and to laying strong foundations for a sustainable future for the industry. Collaboration between insurers, reinsurers, and other key stakeholders is vital for refining local practices and developing new products tailored to the evolving needs of the US market – enhancing the overall value proposition of credit insurance.

For an in-depth look at the US credit insurance market in 2025, watch the full recording of the panel discussion on YouTube.