The LGD Studies represent an industry initiative initiated in 2002 that measure the ultimate loss relative to the exposure amount in case of a default. ICISA, in collaboration with PERILS and Versicherungsforen Leipzig published  reports on LGD for the years 2005 and 2011.

Recently, ICISA published the studies that cover 2015 and 2016. The studies are based on data collected from more than 80% of the global credit insurance market. These two reports investigate the LGD metric in the trade credit insurance market for large risks which are defined as exposure higher than EUR 500,000 per buyer and per company. The weighted mean LGD for the combined observation period 2015 to 2016 is 7.9%, with a 95% confidence interval of 6.9% to 8.8%.

The detailed results of the LGD Studies are useful for:

  • Market benchmarking
  • Internal model validation and risk modelling
  • Reinsurance structuring and risk assessment
  • Limit setting and risk management
  • Solvency regulations

The studies are exclusively available from ICISA. A free summary of these reports can be downloaded here.

For questions related to the LGD studies, or for inquiries to buy the full LGD studies, please contact