What are the biggest questions challenging today’s trade credit insurance market in China and beyond? That was the focus of a recent reinsurance seminar, hosted by China’s leading credit insurer, where industry experts came together to explore the shifting risks and opportunities shaping the global landscape. From the continued uncertainty around U.S. tariffs and their impact on Chinese exporters, to the potential shift in ESG policies, the panel highlighted how these external forces are reshaping credit risk. In addition to these macroeconomic and regulatory concerns, the conversation also explored the growing role of AI in underwriting and risk analysis.
In this Quick Read, Piergiorgio D’Ignazio, PartnerRe’s Product Leader for Credit & Political Risk, shares highlights and insights from the panel discussion.
According to the World Bank’s June report, global trade policy uncertainty has surged to unprecedented levels, with recent months far exceeding the historical maximum recorded between 1960 and 2023 (see Figure 1). This spike reflects heightened volatility around the direction, scale, and timing of tariff actions and potential retaliatory responses.
Figure 1: World Bank’s “Global Economic Prospects” report, June 2025
With U.S. tariff uncertainty continuing to weigh on global trade flows, China – like other countries – is taking steps to reduce its reliance on the American market. This includes efforts to grow domestic consumption and shift production to new export destinations, such as Africa, Southeast Asia, and other emerging markets.
While this diversification reflects a strategic, long-term approach, it also introduces new dimensions of credit risk. Companies expanding into less familiar or lower-rated markets may face greater exposure to counterparty default and operational challenges. In support of this evolving trade landscape, Chinese insurers and their global partners are investing in new analytical tools to strengthen underwriting and risk assessment capabilities in these emerging regions.
The evolving political landscape is undoubtedly adding new layers of complexity to ESG risk assessment. We’re seeing increased potential for legal and compliance risks, particularly for companies actively engaged in ESG initiatives or investments in renewables and sustainable infrastructure. The long-term fundamentals—climate exposure, energy transition, and social governance – remain material to risk. What’s changing is the regulatory and reputational context.
This is a dynamic moment, but not an unprecedented one. The reinsurance industry has operated through shifting policies, volatile energy prices, and changing investor sentiment before. The short-term nature of the underlying product allows for active management of credit risk and exposure, and we can rely on our clients’ technical capabilities to navigate and minimize the impact of such volatility.
Our role is to stay focused on long-term risk fundamentals while recognizing short-term pressures. There’s no need for panic – just vigilance, adaptability, and a clear-eyed view of how uncertainty affects risk profiles.
AI is beginning to make a measurable impact across the credit insurance value chain – from automating financial statement analysis to streamlining credit scoring and contract screening. Tasks that once took hours or days are now being completed in minutes, allowing underwriters to focus more on complex, judgment-based decisions.
Panelists were clear: AI isn’t replacing underwriters – it’s augmenting them. By eliminating manual, repetitive work, AI is freeing up capacity and boosting consistency, accuracy, and efficiency in underwriting workflows. In nuanced lines like credit or political risk, human insight remains critical. The future is about collaboration between technology and expertise – not substitution.
As insurance markets across the Asia-Pacific region continue to mature, international reinsurers are well-positioned to be key enablers of sustainable growth. Beyond providing capacity and mitigating performance volatility, reinsurers bring deep experience drawn from more established markets, along with a wealth of knowledge spanning diverse legal systems and regulatory frameworks.
Across the region, we are witnessing the emergence of new specialized insurance and surety products as public authorities and clients recognize the value of transferring traditionally uninsured risks – many of which were previously managed only through partial bank guarantees – into the insurance ecosystem.
In China, several innovative products are being developed and are in their infancy stages, illustrating the evolving nature of the market:
In developing and introducing such complex products to market, global reinsurers play a critical role enhancing product design, refining pricing and improving risk models. Their involvement helps foster a more resilient and sophisticated insurance ecosystem.
PartnerRe’s Financial Risks team provides reinsurance expertise to insurance companies on a worldwide basis for trade credit, surety bonds as well as the whole spectrum of financial risks on both a treaty and a facultative basis. Get in touch with our team.
Piergiorgio D’Ignazio, Product Leader Credit & Political Risk