Capabilities that keep commerce flowing across the globe
Globally and in the U.S., a key differentiator for our trade credit insurance and risk management team is that most of us come from lending or corporate finance backgrounds. As career credit professionals, we’ve sat in your chair and we understand the challenges you face. This makes us more effective and more credible advocates for you with underwriters as well as understanding how to structure solutions that:
- migrate specific international or domestic payment risk concerns on private sector counterparties as well as sovereign and sub-sovereign entities; or
- reduce the risks associated with investments in property, plant and equipment in emerging market countries are not subject to arbitrary foreign government actions which prevent our clients from either being legally able to use those assets OR bring their profits or capital back to North America.
Providing credit liquidity that keeps business moving
We leverage our leading insurance experience and relationships with carriers around the world to give our clients innovative strategies which protect them from unexpected credit losses. From both accounts receivable and commercial loans. Our customized solutions include:
- establishing protection against unexpected revenue, profit and cash shortfall caused by bad debts or the insolvency of major customers or suppliers
- empowering you to sell more to domestic or foreign customers and gives you the ability to enter new markets or offer higher credit limits or longer terms of sale
- enabling more customer or supplier friendly alternatives to letters of credit, cash collateral and other types of secured transactions
- enhancing your borrowing availability under an asset-based line of credit by mitigating the lender’s risk of large customer concentrations, foreign receivables, or extended sales terms.
Capital markets solutions. We are a market leader in placing solutions with major non-insurer financial institutions for more esoteric risks such as covering counterparties who may be insufficiently supported by traditional insurers due to challenging credit quality and credit risk which may be created as a result of unfavorable movements in commodity prices.
Types of credit insurance policies
- Whole turnover or multi-buyer coverage - insuring all or most of your revenues.
- Key account coverage - insurance that focuses on a specific carve-out of certain targeted customers (typically fewer than 20.)
- Single buyer coverage - non-payment coverage on one particular counterparty.
Political risk solutions
Conducting business across the globe comes with its own issues and challenges. We provide a comprehensive stronghold of risk management solutions to protect your people as well as the value of your business operations. Our solutions include:
- Currency inconvertibility and non-transfer risks are the most popular perils being covered in trade transactions and can be underwritten on a stand-alone basis.
- Contract frustration involves non-payment by sovereign and non-sovereign entities. Obligors can include the Ministry of Finance, central bank and other state-owned financial institutions and ministries.
- Confiscation, expropriation, nationalization and deprivation (CEND) policies are designed to protect corporations and financial institutions that maintain an ownership or security interest in property abroad. Currency inconvertibility and transfer risks can also be added to CEND policies to protect against the political risk associated with inter-company loan payments and/or dividend repatriation.
- Political violence, forced abandonment, embargo and sanctions are all perils that can be insured under political risk insurance policies too.