Zurich and Allianz wrote trade credit insurance policies covering losses on transactions linked to iron ore trader Radiant World, potentially exposing insurers to another alleged fraud case. Radiant, founded by Pinkesh Nahar, faces court claims from creditors in the UK and Singapore over allegedly fraudulent documentation. Both Radiant and Nahar deny wrongdoing.

Zurich insured Radiant against non-payment from multiple counterparties including Glencore, with coverage in the double-digit millions of dollars. Glencore, one of Radiant's biggest counterparties, has called Radiant's claims of a deeper partnership "meritless." Allianz Trade, a subsidiary of the German insurer, also insured Radiant but with smaller total exposure.

Trade credit insurance has become a lucrative niche but faces scrutiny after high-profile collapses involving fraud allegations. Policies typically cover customer default or insolvency while excluding some fraud losses, though courts have sometimes required payouts despite fraud. Zurich is defending against a $400mn claim in London's High Court from Greensill Capital's administrator over policies linked to Sanjeev Gupta's companies. Allianz Trade also faced exposure from the First Brands Group bankruptcy. Zurich stated it "does not have any material exposure to Radiant World."