The credit and political risk insurance (CPRI) market recorded another strong year in 2025, with growth and performance standing out despite global economic and geopolitical headwinds, according to the latest analysis by reinsurance broker Howden Re, released yesterday.
Howden Re’s Managing Director for Global Specialty Treaty, Phil Bonner, said, “2025 was defined by strong growth, disciplined underwriting and sustained outperformance across the CPRI market. Elevated demand from banks and corporates was largely matched by increased capacity, allowing both incumbents and new entrants to expand participation without compromising technical standards.”
Howden Re’s credit and political risk insurance team added that supply and demand dynamics remained broadly balanced, with higher client uptake met by a corresponding rise in market capacity. The report noted that the focus on high-quality risks led to some overcapacity and modest easing in pricing, but reductions across the wider market were measured, constrained by conservative underwriting and supply limitations.
The broker highlighted that insurers increased line sizes on individual risks, with new entrants helping to absorb some of the elevated demand from banks and corporates navigating a volatile macroeconomic and geopolitical environment. Nevertheless, demand still outpaced capacity in certain areas.
Data for the US market, which serves as a reasonable proxy for global CPRI trends, illustrates these dynamics. In the first half of 2025, credit, surety and fidelity insurance recorded 10% growth, compared with only 5% for major US commercial lines. Loss ratios remained low, at 26%, versus 57% for broader commercial lines. Globally, the three major credit insurers posted an average combined ratio of 75% in 2024.
Howden Re noted that high underwriting standards remain a defining feature of the CPRI market. Despite market uncertainty, no major deterioration in claims was seen in 2025.
Looking ahead, Howden Re’s Managing Director of Reinsurance Broking Credit and Financial Risk, Marius Fischer, said a gradual and selective softening in 2026 can be expected. “Competition is increasing for more standardised risks, but resilient demand from banks, corporates and funds seeking capital relief and balance sheet protection will underpin the market. Participation from institutions that were historically minor buyers, including U.S. banks, is also growing. Absent a major loss event, underwriting discipline and constrained specialist talent are likely to stabilise margins,” Fischer said.
The strong performance last year was supported by steady pricing declines, with competition driving reductions of 10–20 points from post-COVID-19 highs for standard and commoditised risks. Reinsurance renewals on 1 January 2026 recorded modest gains in ceding commissions for quota-share business, while excess-of-loss programmes remained largely stable.
Howden Re also stressed that an ongoing challenge is the shortage of experienced underwriting talent. Competition for skilled professionals has intensified, increasing hiring costs and expense ratios, particularly among new entrants and MGAs.
As banks and corporates continue to rely on CPRI for capital relief, balance sheet management and risk mitigation, the market is poised for steady, disciplined growth in 2026, provided underwriting standards remain high and no major loss events disrupt current stability.