During ICISA’s landmark 100th Annual General Meeting in Vienna, Deepesh Patel, Editor of Trade Treasury Payments (TTP), sat down with Xavier Durand, Group CEO of Coface, to explore how the industry can respond to today’s evolving challenges. Read the highlights of the interview and watch the accompanying video below.
As a vital pillar of international trade, the credit insurance industry is entering a defining period. Established approaches to risk management are being challenged by the rapid advancement of new technologies and the growing shift toward regionalised economic ecosystems.
AI: transformation or continuation?
Finding the right balance between investing in people and investing in technologies such as artificial intelligence (AI) has become increasingly important. According to Durand, however, this is not a revolutionary departure but rather the latest stage in the sector’s ongoing technological journey. As he points out, "when I started my career, there were no mobile phones, no laptops, and the internet did not yet exist."
For Coface, the AI journey began well before the recent surge in interest surrounding the technology. The company established a dedicated data lab years ago to develop and leverage AI-driven models. Yet, as Durand notes, the speed of innovation in this area has accelerated dramatically. In such a fast-moving environment, standing still is simply not an option. Organisations across nearly every sector are directing resources toward AI, but long-term success will depend not only on investment levels, but also on how effectively those investments are translated into tangible business value.
AI is reshaping competition within the credit insurance market. It can enable the rise of innovative and agile newcomers while simultaneously giving established players, or "incumbents" as Durand describes them, new tools to reinforce their existing strengths. Companies like Coface can combine AI capabilities with decades of sector expertise, extensive historical data, and strong brand recognition to accelerate innovation and strengthen their market position.
It’s a race. And the sector, like literally every industry, is going to evolve and is going to invest.
- Xavier DURAND
Exploring new opportunities
Xavier Durand also highlights significant growth potential in what he describes as the vast untapped "white space" of small and medium-sized enterprises (SMEs) and developing markets. "The opportunity lies beyond Europe and among smaller businesses around the world," he explains. While large corporations have incorporated credit insurance into their risk management frameworks for many years, the product remains underused across numerous regions globally.
Durand estimates that the credit insurance industry currently covers only a small percentage of global receivables, perhaps between 5% and 7%. This represents a considerable opportunity for expansion. However, unlocking that potential is not simply a matter of offering existing solutions to new customers. It requires making credit insurance easier to access, understand, and afford.
In Durand’s view, the key challenge is helping these underserved businesses recognise the value of the product and understand how to use it effectively. For an industry that still represents a relatively limited share of global business activity, expanding into these new segments and capturing their growth potential may be one of the most important developments of the next century.
Trade always finds a path
Global trade is undergoing significant change. As supply chains become more diversified and trade flows increasingly regionalised, some observers question whether demand for trade credit insurance could weaken over time. Durand does not share this concern, and his confidence stems from the enduring resilience of commerce itself. "Trade is like water; it always finds a path," he says.
While acknowledging that the pace of trade growth may fluctuate due to sanctions, tariffs, taxes, and other barriers, Durand believes that the fundamental need for exchange remains unchanged. Because trade inherently involves risk, businesses will continue to seek solutions such as credit insurance to manage that exposure. The challenge for Coface and other industry participants is determining how best to meet those evolving needs.
The industry’s next century
As the credit insurance community marks its 100-year milestone and looks ahead, it appears to face a dual responsibility. On one hand, companies must continue embracing emerging technologies to remain competitive in a world increasingly driven by data and sophisticated risk analytics. On the other hand, the industry must broaden its reach, extending its value proposition to SMEs and fast-growing emerging economies that are expected to drive future global expansion.
Organisations such as Coface, led by experienced executives like Xavier Durand, appear well aware of these opportunities and challenges. Technological advancement is viewed not as a temporary trend but as a long-term strategic priority, supported by a clear understanding of the role the industry can play in today’s global economy. As long as trade continues to connect businesses across borders, finding new ways to support and protect those transactions will remain a central objective.
Ultimately, the future of credit insurance may depend on the industry’s ability to demonstrate its value more effectively to smaller businesses in emerging markets. Large multinational companies already understand that value. For more than a century, credit insurance has helped businesses navigate uncertainty with greater confidence, and its relevance is likely to remain just as strong in the years ahead.
