Strategic protection against non-payment and political risk
Considerations for corporates when determining risk appetite
A key point of focus for corporates seeking to determine their risk appetite is predictability – weighing the potential benefits of investment and innovation against the risk of known and unknown threats. Choice of customers, terms of credit and risk transfer are all important considerations when formulating a business development strategy which takes risk appetite into account.
Trading risk, however, can come in many forms; the insolvency of a major customer with outstanding debts, for example, can have a huge impact on a supplier’s balance sheet if no coverage is in place. Furthermore, for companies selling to customers in emerging markets, political risks such as cancellation of an import or export license, supply route interruption (for example due to civil war or riots) or currency inconvertibility can also result in non-payment, which can have a significant impact on cash flow for the uninsured supplier. The insolvency of a major customer is one of the most common causes of corporate insolvency; how can you protect yourself against such risks, which may not be immediately measurable?
Structured credit and political risk insurance from Gallagher
We have extensive experience in providing solutions for precisely these kinds of risks to businesses worldwide and operating in multiple sectors, from energy to paper and pulp, transport to healthcare.
We can provide comprehensive credit insurance to protect you against non-payment from a commercial customer as a result of bankruptcy, protracted default or political risks. If you have assets overseas we can provide you with political risk insurance to help protect you in the event of political interference from the host government, allowing you to own and operate valuable manufacturing or distributing hubs to serve your global customer base.
The added value of credit and political risk insurance for your business
In a highly competitive environment, many companies are forced to trade on increasingly fine margins. Credit and political risk insurance can help to protect and grow these margins, securing cash flow whilst benefiting from the risk transfer capabilities of the insurance market to access new customers and markets, safe in the knowledge that your business is protected. In addition to this, companies that insure payment risks can typically obtain improved financing terms from banks, providing further liquidity support.
Tailored solutions from a specialist team
Our specialist team at Gallagher has extensive experience in delivering credit and political risk insurance for our clients.
Our established relationships with Lloyd’s of London and international insurance markets mean that we can be confident in our ability to obtain the most appropriate coverage for your requirements.
Going beyond insurance
We understand that this is not just a box-ticking exercise for your business, and we are committed to partnering with you to provide an ongoing risk management solution.
The service we offer at Gallagher goes way beyond the provision of insurance – we tap into the collective experience and knowledge of the insurance market to help you make strategic decisions about future trade and investment opportunities.
With combined expertise from a range of backgrounds - from insurance, to banking, to the public sector - we understand the importance of building relationships, not just business.
Structured Credit & Political Risk Cover
- Protection against credit and political risks
- Balancing risk tolerance and risk transfer to build business development strategies which can be profitable over the longer term
- Specialist broking team with multi-disciplinary backgrounds
- Dedicated in-house claims team