Trade Risk Management

The global business environment faces a prolonged period of elevated risk. Allianz Research expects global business insolvencies to rise by +6% in 2025, and again by +5% in 2026, before a modest decline in 2027. This marks the fifth consecutive year of increases, pushing global bankruptcies +24% above the pre-pandemic average. This sustained surge is driven primarily by North America and Asia, underscoring the necessity for robust credit risk management.

The trade war initiated by the Trump administration's sweeping import duties (an effective rate of 11% by August 2025 ) has reshaped global trade flows without yet triggering the mass insolvency wave many feared in the US. However, the reprieve is temporary, and the risk has simply been delayed, not dodged. This deep dive explores the mechanism that shielded the US and reveals the significant financial burden now shifting to export-driven economies, particularly in Europe.

The global rise in business insolvencies is not just a cyclical correction; it’s driven by structural challenges that will keep failure rates high through 2026. Despite Western Europe showing a modest decrease in 2026, the overall global index is set to rise again by +5%. This FAQ addresses the three critical structural factors that businesses must manage to survive the prolonged economic headwinds.

The APAC chemicals sector is undergoing significant transformation, presenting both massive growth opportunities and critical operational challenges. Based on our latest analysis, we've compiled the most important questions for businesses operating in or trading with this dynamic region.

For the highly cyclical chemicals sector, managing credit risk is paramount. While the APAC region drives much of the global output, the overall sector rating globally and in APAC remains at Medium Risk.

The Asia-Pacific region is the world's largest and fastest-growing market for chemicals, and global shifts are reshaping its future. Rapid industrialization, urbanization, and increasing consumer spending in countries like China and India are creating robust demand.

Extending credit to customers is a necessary part of doing business, but it comes with the inherent risk that some invoices will never be paid. When an account receivable becomes uncollectible, it becomes a bad debt, and it must be accounted for on your income statement as a bad debt expense.

Companies typically view insurance as a safety net, a cost to mitigate risk. But what if it could also be a catalyst for growth? This data deep dive explores how Trade Credit Insurance (TCI) transforms from a protective tool into a powerful growth engine, using insights and real-world data from the Allianz Trade guide.