Credit insurers covered USD 3,345 billion of short-term trade in 2025 and paid USD 11,107 million in claims
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Ossiano Guides · Getting paid
Trade credit insurance pays an exporter most of an unpaid invoice when a foreign buyer defaults or a political event stops payment, and the policy can be assigned to a lender to support financing.
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01 · What it covers
Credit insurance pays the seller when a foreign buyer cannot pay, or is stopped from paying
protects a seller against an unpaid invoice. When the seller is an exporter, it is usually called . The US International Trade Administration (ITA) says it protects an exporter against non-payment by a foreign buyer, in its Trade Finance Guide. The says its policy protects foreign receivables, the money buyers owe, from both commercial and political losses, on its Export Credit Insurance page.
The cover falls into two groups. is about the buyer itself. The ITA lists buyer insolvency, bankruptcy, currency devaluation and protracted default, which means a buyer that simply keeps not paying. is about events in the buyer's country. The ITA lists war, terrorism, riots, revolution, currency inconvertibility, expropriation and changes in regulation. Inconvertibility means the buyer cannot turn local money into the invoice currency. Expropriation means a government takes over the buyer's assets.
One thing sits outside the cover. The policy does not pay for physical loss of or damage to the goods, the ITA notes. That is a job for cargo insurance.
Small firms use it too. EXIM features CocoaTown, trading name of Inno Concepts Inc. of Alpharetta, Georgia, a maker of chocolate-making equipment, as a user of EXIM Export Credit Insurance in its CocoaTown case study. EXIM states that the company exports to more than 100 countries, including Brazil and Canada, and that exporting brings in about 70 percent of its USD 1.18 million of sales revenue.
02 · How much it pays
Short-term cover usually pays 90 to 95 percent of a covered loss
The policy pays a set share of the unpaid invoice, not all of it. provides 90 to 95 percent coverage, the ITA states. provides 100 percent coverage after the buyer makes a down payment of at least 15 percent. The seller keeps the uncovered share of any loss, because risk sharing is usually below 100 percent.
EXIM publishes its own levels. A covers sales to one chosen buyer. EXIM's Single Buyer Insurance pays 90 percent for private buyers, 100 percent for sovereign (government) buyers and 98 percent for bulk agricultural sales; pre-shipment cover is typically 95 percent. A covers many buyers under one policy. EXIM's Multi-Buyer Insurance covers commercial and political risks at 95 percent.
EXIM's Export Finance Solutions Guide of March 20, 2026 describes its short-term policy as a one-year renewable policy. It generally covers payment terms of up to 180 days at 95 percent, for both commercial and political nonpayment.
03 · How long it runs
Short-term cover runs up to 180 days; medium-term cover runs up to five years
The , the time until the buyer must pay, decides which policy fits. Short-term cover runs up to 180 days, and in some cases up to 360 days, says the ITA. Medium-term cover runs up to five years.
EXIM's Medium-Term Export Credit Insurance product sheet of February 18, 2026 gives terms of 1 to 5 years, and in some cases up to 10 years. It covers 85 percent of the invoice value after a 15 percent down payment, for invoices of up to USD 25 million. CIF is a delivery term in which the seller pays freight and marine insurance to the destination port.
Longer deals from government-backed lenders follow an international rulebook. The OECD Arrangement on Officially Supported Export Credits, January 2026 text, applies to officially supported export credits with a repayment term of two years or more. Our guide to tenor explains how term length shapes trade finance.
04 · What sets the price
The premium follows the risk the insurer takes on
The premium is the price of the policy. The ITA says it depends on the payment terms, how creditworthy the buyer is, the countries involved, the exporter's experience, and the policy's and . A deductible is a set amount of loss the seller carries before the insurer pays. Co-insurance is the share of each loss the seller keeps.
Cover across many buyers usually costs little. A multi-buyer policy generally costs a fraction of one percent of insured sales, the ITA states. The cost of a single-buyer policy varies more, because the risk sits with one buyer.
Cover is sold by private insurers and by EXIM, the ITA notes. EXIM is an , a government-backed body that supports its country's exports. Our guide to how trade finance is priced shows how fees and rates build up across trade finance.
Figure 1 · Try it
What a buyer default costs, with and without cover
Set insured sales, the premium and the defaulted invoice. Switch cover between 90 and 95 percent.
Cover, percent of the loss the policy pays
Premium for the year
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Claim payment
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Net cost of the default with cover
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How it works: the premium equals insured sales times the premium rate; the claim equals the defaulted invoice times the cover percent; the net cost with cover equals the uninsured share plus the premium. Without cover, the net cost is the whole defaulted invoice.
Our Research Desk used the policy's cover percentage and a flat premium on insured sales. Deductibles, waiting periods and recoveries are excluded. The premium rates shown are for illustration and are not market figures. They are not Ossiano pricing.
This calculator explains the concept only. Premiums and cover depend on buyers, countries, payment terms and each policy's terms.
05 · Link to finance
An insured invoice is easier to finance
Insurance can help a seller raise cash, not only recover losses. Under EXIM's Single Buyer Insurance, the policy proceeds, meaning the claim payments, may be assigned to a bank or other lender to finance the receivables. This is an : if a covered buyer fails to pay, the claim money goes to the lender. EXIM adds, on its Export Credit Insurance page, that lenders are more likely to count insured foreign receivables as eligible collateral.
Figure 2 · Interactive
What happens to an insured invoice
Tap an outcome. The last step shows who receives the money.
Sources: Export-Import Bank of the United States, Single Buyer and Multi-Buyer insurance pages; US International Trade Administration, Trade Finance Guide, July 2022. No single official step sequence exists; the order is the Ossiano Research Desk's.
The ITA recommends export credit insurance alongside terms, where goods ship before the buyer pays, and alongside pre-export working capital finance. Our guides to open account trade and pre-export finance cover both.
Insurance also shapes , where a seller sells its invoices to a finance provider. Whether factoring comes with or without , the provider's right to claim money back from the seller, depends on credit insurance, the jurisdiction and market practice, according to the Global Supply Chain Finance Forum. In the provider carries the buyer's risk. Our guide to receivables finance explains how these structures work.
06 · Market scale
Berne Union members' cover and claims both rose in 2025
The is the industry body for export credit and investment insurers. It has represented the industry since 1934, says its About page. Its members include export credit agencies and private insurers.
Members insured USD 3,345 billion of short-term trade in 2025, up 11 percent, according to the Berne Union's State of the Industry 2025 data highlights. New medium and long-term business reached USD 231 billion, up 17 percent. Its State of the Industry Report 2025 puts the trade members protected at about 14 percent of world cross-border trade, or USD 3.71 trillion, in 2025.
Claims paid show the cover at work. Members paid USD 11,107 million of claims in 2025, up 17 percent, per the data highlights. That was the first year claims passed USD 11 billion, the Berne Union said in its June 24, 2026 announcement. Members also made USD 3.3 billion of , money collected back after claims were paid.
Figure 3
Berne Union members' business, 2025
Each card shows the 2025 total and the change on 2024 as the Berne Union reports it.
Source: Berne Union, State of the Industry 2025, data highlights, published June 2026. Medium and long-term credit claims and trade protected: Berne Union, State of the Industry Report 2025, June 2026.
US public cover grew too. EXIM authorized USD 2,422.8 million of short-term insurance across 1,126 authorizations in fiscal 2025, its Annual Report 2025 shows. In fiscal 2024 it authorized USD 1,831.1 million across 1,208 authorizations.
07 · Ossiano view
Insurance turns buyer risk into a financeable asset
OBSERVATION 01
Cover supports lending, not only loss recovery
EXIM allows policy proceeds to be assigned to a lender, as its Single Buyer page states. It also says lenders are more likely to count insured foreign receivables as collateral.
OBSERVATION 02
Claims capacity is proven at scale
Berne Union members paid USD 11,107 million of claims in 2025, above USD 11 billion for the first time, and recovered USD 3.3 billion, per the Berne Union.
OBSERVATION 03
Public and private capacity work side by side
The ITA notes cover from private carriers and from EXIM. EXIM's short-term insurance authorizations rose to USD 2,422.8 million in fiscal 2025, from USD 1,831.1 million in fiscal 2024, per its Annual Report 2025.
Summary
Trade credit insurance pays most of an unpaid invoice and makes the invoice easier to finance
Export credit insurance protects an exporter against non-payment by a foreign buyer. It covers commercial risks, such as buyer insolvency and protracted default, and political risks, such as war and currency inconvertibility. Short-term cover pays 90 to 95 percent of a covered loss, so the exporter keeps a small share. Policy proceeds can be assigned to a lender to finance the receivables.
Berne Union members insured USD 3,345 billion of short-term trade in 2025 and paid USD 11,107 million in claims.
Related guides: Receivables finance; Factoring vs invoice discounting; Open account trade; Buyer, country and performance risk; Forfaiting; Who's who in a trade transaction.
Instrument cards: Trade credit insurance; Factoring; Open account; ECA-backed finance (buyer and supplier credit). Every term on this page is defined in the Trade Finance Glossary.
For questions on how credit insurance applies to existing or planned trade flows, contact the Ossiano Research Desk.
Sources
- Berne Union, Berne Union State of the Industry 2025 (data highlights page), June 2026. Supports: short-term trade insured of USD 3,345 billion, up 11%; medium and long-term new business of USD 231 billion, up 17%; total claims paid of USD 11,107 million, up 17%; recoveries of USD 3.3 billion.
- Export-Import Bank of the United States, EXIM Export Finance Solutions Guide (EBK-EFSG-26-03-20), March 20, 2026. Supports: one-year renewable short-term policy, generally covering terms of up to 180 days at 95% for commercial and political nonpayment.
- Export-Import Bank of the United States (EXIM), EXIM Annual Report 2025 (fiscal year ended September 30, 2025), undated. Supports: short-term insurance of USD 2,422.8 million across 1,126 authorizations in fiscal 2025, and USD 1,831.1 million across 1,208 in fiscal 2024 (page 16).
- US International Trade Administration, US Department of Commerce, Trade Finance Guide: A Quick Reference for US Exporters (2022 edition), July 2022. Supports: definition of export credit insurance; commercial and political risks covered; exclusion of physical loss or damage; risk sharing below 100%; short-term coverage of 90 to 95 percent; medium-term coverage of 100 percent after a 15 percent down payment; tenors; premium drivers; multi-buyer cost of a fraction of one percent; private and EXIM providers; use with open account and pre-export finance (pages 20 and 21).
- Export-Import Bank of the United States, Single Buyer Insurance, undated. Supports: coverage of 90% for private buyers, 100% sovereign, 98% bulk agricultural, typically 95% pre-shipment; assignment of policy proceeds to a financial institution.
- Export-Import Bank of the United States, Export Credit Insurance, undated. Supports: protection of foreign receivables from commercial and political losses; lenders more likely to count insured foreign receivables as collateral.
- Export-Import Bank of the United States, Multi-Buyer Insurance, undated. Supports: commercial and political risks covered at 95%.
- Export-Import Bank of the United States, EXIM Medium-Term Export Credit Insurance (EBK-MEDT-26-02-18), February 18, 2026. Supports: terms of 1 to 5 years, in some cases up to 10; 85% of the CIF invoice value covered after a 15% down payment; invoices up to USD 25 million.
- OECD, Arrangement on Officially Supported Export Credits, TAD/PG(2026)1, January 2026. Supports: the Arrangement applies to officially supported export credits with a repayment term of two years or more (Article 5).
- Global Supply Chain Finance Forum, Factoring, technique page, October 31, 2024. Supports: factoring with or without recourse depending on credit insurance, jurisdiction and market practice.
- Berne Union, State of the Industry Report 2025 Published, June 24, 2026. Supports: claims above USD 11 billion for the first time. The State of the Industry Report 2025 itself (June 2026) supports members protecting about 14% of world cross-border trade, USD 3.71 trillion, in 2025, and medium and long-term credit claims paid of USD 5,335 million (Table 7).
- Berne Union, About the Berne Union, undated. Supports: association representing the export credit and investment insurance industry since 1934.
- Export-Import Bank of the United States, CocoaTown success story (case study), undated. Supports: Inno Concepts Inc. dba CocoaTown as a user of EXIM Export Credit Insurance; exports to 100+ countries including Brazil and Canada; about 70% of USD 1.18 million of sales revenue from exporting.
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