Role shift for insurance mediator
In the ever-evolving landscape of the credit and political risk insurance industry, a cautious approach is prevailing amidst macroeconomic and geopolitical uncertainties. The industry is witnessing a steady yet slow growth, with a slight contraction in Q2 2025 signalling potential overall slowdown for the year.
One of the key players making strategic moves in this environment is BPL Global, who have recently welcomed Anthony Palmer to their credit and political risk team. Palmer, with four decades of experience in the field, brings a wealth of knowledge and expertise to the table.
Meanwhile, ESR Insurance Services, a subsidiary of The Primary Group, has bolstered its team under the leadership of Adam Massingham. Massingham, a seasoned professional in credit and political risk, leads a team of six specialists at ESR. The transfer of all existing clients and business to ESR has occurred, and the firm is now facilitating the growth of new business.
ESR's aim is to increase its presence in the global trade arena, a move that aligns with the industry's trend towards addressing emerging risks and customizing underwriting. The company's focus on maintaining high standards of service and expertise valued by clients in finance and trade is a testament to their commitment to the industry.
The rise of parametric insurance, which pays out based on defined trigger events rather than actual losses, is gaining traction. This innovation offers faster claims and greater transparency, reflecting the industry's drive towards adaptability and efficiency.
Flexibility in policy structuring is also on the rise, with modular coverage options allowing clients to customize their protection, covering supplier default, customer default, and political risks independently. This trend towards tailored products is particularly evident in the development of offerings for emerging markets and high-risk sectors such as renewable energy projects, e-commerce, and SMEs in developing countries.
The increased underwriting scrutiny and cautious approach in Q2 2025, particularly towards emerging market deals and sectors affected by tariffs and policy uncertainty, suggest that insurers are expanding risk assessment teams and adjusting risk models to reflect geopolitical shifts. The growing importance of political risk insurance, especially for sectors like carbon credit projects, also implies enhanced focus and possibly expansion in teams specializing in geopolitical and regulatory risk analysis.
In summary, the credit and political risk insurance industry in mid-2025 is characterised by market cautiousness amidst macroeconomic and geopolitical uncertainties, ongoing innovation in product offerings, and strategic capacity building to address emerging risks. These trends reflect a sector adapting to a more fragmented global trade environment and higher volatility in both credit and political risk exposures.
- ESR Insurance Services, with a focus on growing in the global trade arena, is actively adapting to industry trends by addressing emerging risks and customizing underwriting, a move that involves expanding their team and offering modular coverage options in finance and trade.
- In the realm of trade finance, BPL Global's strategic growth tactics offer a glimpse of the sector's resilience, as they bring in seasoned professionals like Anthony Palmer to their credit and political risk team, aiming to maintain high standards of service and expertise that cater to clients' evolving needs.
