In the face of the recession, demand for trade credit insurance—long a staple in European insurance programs—skyrocketed in the United States over the past two years. But the increased demand came amid a significant spike in claims. The three major U.S. trade credit insurers all had high loss ratios in 2008.

Losses in 2009 were high for trade credit insurers, and they will continue to be discerning about the risks they select in 2010. And those that are accepted—or renewed—may well experience premium rate increases. Claims will also continue to be scrutinized more as insurers look to minimize losses.