Key themes

• Although COVID-19 related claims have not materialised at anything like the expected levels, the market consensus is that insolvencies and corporate defaults will start to emerge later in 2021 and into 2022 as government support measures taper off.
• Notwithstanding the end-June expiry of government trade credit reinsurance schemes, insurer credit limit appetite and capacity has expanded during H1 2021 with current risk acceptance rates for many trade sectors returning to pre-COVID levels.
• The pricing environment has stabilised and the hardening trend experienced in H2 2020 has now moderated in H1 2021 linked to the more favourable market conditions and a market shift from remediation to profitable growth.