Rising Adoption of Credit Insurance Boosts Swedish Business Stability and Growth

Swedish companies are increasingly adopting credit insurance as a strategic tool to mitigate credit risks and support growth amid economic uncertainties. According to recent reports by the Swedish Credit and Guarantee Insurance Association (KGFF), the use of credit insurance is on the rise, with experts highlighting its multifaceted benefits.

Camilla Arwin, Risk Underwriting Manager at Atradius, a global credit insurance provider, explains that credit insurance enhances cash flow and balances sheets by ensuring payments, either directly from customers or through insurer coverage. This reduces provisions for bad debts and improves financial stability. Additionally, credit insurance enables businesses to expand safely into new and unfamiliar markets by allowing credit transactions without historical customer data, thereby supporting secure growth.

The insurance also provides data-driven decision-making tools by combining credit reports with ongoing analyses of millions of companies, helping CFOs assess customer reliability. It further offers flexibility to react swiftly to changing risk conditions by identifying anomalies and payment disruptions early, preventing chain reaction risks.

Beyond risk management, credit insurance offers businesses access to risk reports and opportunities to explore new markets confidently, including onsite buyer assessments during events. Atradius, with more than 100 years of experience and operations in over 50 countries, maintains a high customer retention rate of 95% and anticipates reducing risks amounting to €928 billion in potential exposures for 2024.

This trend reflects a strategic shift among Swedish firms to use credit insurance not just as a defensive measure but as an enabler for growth and market expansion in volatile economic climates.