BPL Global is pleased to announce the release of its latest Market Insight 2019 report.
The new annual market report shows that Spain and Germany ranked sixth and seventh in the top 10 countries for CPRI claims by value from 2016 to 2018. Over the three-year period, the broker collected US$32 million and US$27 million in claims arising from losses in Spain and Germany respectively, on behalf of its clients.
Although reflecting the natural progression of the market as it meets rising demand to cover OECD-located risk, the finding signals a shift in CPRI claim collection trends, where losses in emerging markets have historically accounted for the highest-value claims. This is supported by BPL Global’s enquiry flow over the past six months which shows that, while there was an even distribution of enquiries between continents in terms of risk location, OECD countries played host to one-third of all risk enquiries.
The Market Insight 2019 report, based on market surveys and analysis of BPL Global’s own portfolio, also indicates that, although the CPRI market has seen a slight decline in overall credit capacity, non-trade credit capacity has increased by approximately 15%, with non-payment public obligor and political risk credit capacities also increasing. This increase in supply evidences the market’s swift response to increased client demand, with over one-fifth of all bank client enquiries now relating to non-trade credit capacity.
In addition, the report addresses concerns around Brexit, particularly with respect to the continuity of long-term policy contracts and the prospects for UK and EU insurers. In the broker’s view, the CPRI market is well-positioned to cope with the impact of Brexit-related uncertainty, with insurers already having put contingency plans in place in the event of a “no-deal” scenario.
James Esdaile, Managing Director, BPL Global, comments: “This year’s report builds on the success of our first Market Insight report published in 2018 and addresses what was a standout year for the CPRI market. Despite the numerous challenges that have been facing our industry, we have identified significant growth across key business lines and an agility within the market to adjust to both shifting risk patterns and evolving client demand.”
Last year’s Market Insight 2018 report represented a crucial landmark for the CPRI market in its collation of cross-market data to validate the CPRI product through its claims record since 1983.