Allianz Chief Economist addresses the world’s ‘trade finance gap’ in keynote speech

1 March, 2023 | London

The Chief Economist of the world leader in trade credit insurance Allianz Trade, Ludovic Subran, addressed the issues around the global trade finance gap and how credit insurance can support business through uncertain times; when he spoke to the industry at an event last Thursday.

Ludovic delivered his insights to a group of insurance industry leaders and other interested parties as part of a joint thought-leadership seminar between Allianz Trade and Marsh, the world’s leading insurance broker and risk advisor.

The afternoon event also included a headline panel discussion from senior representatives from The World Economic Forum, HSBC, DP World Trade Finance, Pemberton Asset Management, Marsh and Allianz Trade.

The trade finance gap is an issue facing several businesses across the globe, including the UK, with many not aware of the solution trade credit insurance could bring. And with many challenges on the horizon in 2023, such as a recessionary environment, this is an important subject to bring awareness to and help reduce the risk to businesses, while increasing the capacity to grow.

Ludovic Subran, Chief Economist of Allianz Trade, said: “While cyclical conditions have reduced supply-chain disruptions across developed economies, we are not fully rid of the risk of shortages. In the short-term, tightening funding conditions and rising interest rates are affecting companies and could potentially widen the trade finance gap. This shortfall of funding means that some trade flows cannot materialize, potentially hindering the normal functioning of parts of supply chains.

“Widely discussed trade patterns such as reshoring, nearshoring and onshoring could help in dissolving supply-chain bottlenecks, but they seem be more talk than walk and the large-scale feasibility can be questioned.

“Elsewhere, the turnaround in interest rates is helping. The medium-term macro-economic outlook is also much brighter, despite – or rather because of – the energy crisis.

“The consequences, beyond the expected recession in 2023, are already becoming clear: a forced transformation of the economy in the direction of decarbonization as well as increased risk awareness in all parts of society, strengthening social and economic resilience.”

Marcus Miller, Global Lenders Solutions Group Leader, Marsh Specialty, added: “The geo-political and economic turmoil over the last 12 months, together with the impact of the lockdowns, has had a very significant effect on global trade and the trade finance industry. As well as reducing liquidity to fund trade it has increased the costs of capital at the same time as inflation has driven rising capital demand.

“Trade finance is a critical growth enabler, which is central to job creation, improving people’s lives, and alleviating poverty, especially in developing countries. While the insurance industry already plays a significant part in supporting over 70% of global trade, innovative risk mitigation techniques could further extend the support it provides to corporates and financiers.”

Vanessa Chance/ Charlotte Coulson/ Ian Silvera, SEC Newgate
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About Allianz Trade

We predict trade and credit risk today, so companies can have confidence in tomorrow.

Allianz Trade is the global leader in trade credit insurance and a recognized specialist in the areas of surety, collections, structured trade credit and political risk. Our proprietary intelligence network analyses daily changes in +80 million corporates solvency. We give companies the confidence to trade by securing their payments. We compensate your company in the event of a bad debt, but more importantly, we help you avoid bad debt in the first place. Whenever we provide trade credit insurance or other finance solutions, our priority is predictive protection. But, when the unexpected arrives, our AA credit rating means we have the resources, backed by Allianz to provide compensation to maintain your business. Headquartered in Paris, Allianz Trade is present in 52 countries with 5,500 employees. In 2021, our consolidated turnover was €2.9 billion and insured global business transactions represented €931 billion in exposure.


About Marsh

Marsh is the world’s leading insurance broker and risk advisor. With over 45,000 colleagues operating in 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit, follow us on LinkedIn and Twitter or subscribe to BRINK.