May 22, 2019What is Trade Credit Insurance?
Tiger Chen According to new figures published by the Association of British Insurers (ABI), trade credit insurers received 17,500 claims in 2018 (the equivalent of 50 per day) – an increase of 60% compared to 2017. Uncertainty is creating an increased level of interest in trade credit insurance. Credit Insurance News Digest has published a Q&A with Adrian Jones, Senior Underwriter of Trade Credit, Political Risk & Surety and Head of Strategy Asia & ME, Trade Credit at Markel (this issue’s sponsor). Adrian notes that the current level of economic uncertainty is creating an increased level of interest in trade credit insurance as well as a requirement for more bespoke, specialist solutions.
What is trade credit insurance?
You extend credit to your customers every day. But what happens when a customer’s defaults? The business closed. Even you’ve never experienced a loss before, it only takes one to greatly affect your bottom line and the future of your business.
Why do you need trade credit insurance?
You extend credit to your customers every day. But what happens when a customer’s defaults? The business closed. Even you’ve never experienced a loss before, it only takes one to greatly affect your bottom line and the future of your business.
- Transfer the risk: Locking financial risks in the form of insurance, and transferring potentially huge property losses with relatively low insurance premiums
- Improve financing capacity: a good underwriting institution can increase the bank credit limit of its customers and can revitalize accounts receivable and flexible turnover.
- Understand new buyers and increase competitiveness: Secured credit allows companies to be more competitive in ordering orders
- Value-added services for account collection: Some credit insurance companies can provide account recovery services to deal with malicious defaults and maximize the preservation and recovery of arrears for some buyers who are on the verge of bankruptcy.
You need a trusted partner who will look out for your interests. We have been quietly working with thousands of businesses for more than a decade, designing credit insurance solutions for businesses just like yours. Call us today to find the credit insurance solution that is designed exactly for you.
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