Introduction

Aon's Credit Solutions Deputy Global Head reviews market dynamics and client trends

I am pleased to share our Q3 Insights from Aon’s global Credit Solutions leadership team which outlines the insurance market dynamics from early 2022 as well as highlights some of the critical expectations for the remainder of the year.

Credit insurers emerged from the COVID-19 crisis in 2021 with strong financial results, driven by i) increased premium volumes, ii) lower levels of expected business insolvency, and iii) amplified demand for innovative solutions. Geo-political tensions combined with energy/commodity price increases and overall inflation will be putting significant pressure on companies' working capital and profit margins. After two years of declines global business insolvencies are expected to increase by +10 percent in 2022 and +14 percent in 2023, approaching their pre-pandemic level.

As our carrier leadership discussion reveals, the needs and applications of credit insurance are intensifying but companies require the right of level of insights in order to i) design the right solution and ii) maximize the effective of the solutions in place.

Our Credit Solutions teams role is to ensure every Aon client is better informed, better advised and able to make better decisions around our products.

In our 2022 Credit Solutions Conference, we will bring together global subject matter experts, industry thought leaders and senior decision makers to discuss the credit solutions issues that are most pressing at this time, providing clients with enhanced clarity and confidence to make better decisions for sustainable growth.

Our solution spotlight illustrates ways in which an advisory approach can help develop innovative solutions that support our clients financial objectives by utilizing i) trade receivables ii) trade payables, iii) collateral replacement (surety), and iv) investments or alternative assets.