2026-11-11 · Source: Insurance Business US
Summary in 3 Points • Three major banks are exploring credit insurance for AI infrastructure loans, indicating rising demand for risk transfer solutions. • The number of credit insurance providers for project finance has increased to over 70, reflecting its importance in infrastructure lending. • Direct credit insurance premium at Lloyd's grew by approximately a quarter in 2025, following the removal of premium income limits. --- Three of the world's largest banks, including Barclays and HSBC, are exploring credit insurance to hedge against AI infrastructure loans, highlighting the increasing demand for risk transfer solutions in the face of concentration limits. The number of credit insurance providers has surged to over 70, indicating the product's growing significance in large-scale infrastructure lending, particularly as banks seek to manage their exposure amid rising costs of credit default swaps. In the London market, direct credit insurance premium at Lloyd's rose by about a quarter in 2025, following the removal of premium income limits on credit and financial guarantee business. This shift has attracted new capacity from syndicates like Atradius and Coface, as banks look to offload risk on AI infrastructure loans. However, insurers are becoming increasingly selective regarding data center exposure, which could impact the availability of coverage as demand continues to grow. The surge in demand for credit insurance for AI infrastructure loans reflects a shift in risk management strategies, impacting capacity and insurer selectivity in the London market.
The surge in demand for credit insurance for AI infrastructure loans reflects a shift in risk management strategies, impacting capacity and insurer selectivity in the London market.