Credit Risk Insurance. New Solutions Offer!
July 8, 2020
It is not a secret that in the past few months (tentatively from February-March 2020), conservative enough credit / financial insurers (with specializing in debtor insurance) already have changed their approach to risk assessment. Experience has shown that now they practically do not deal with the requests coming from new clients, as well as they reduce the credit risk insurance limits for current clients. The situation in the financial risk insurance market is very difficult now – clients cannot get trade financing in banks, because they cannot find the opportunity to insure credit risk, as presence of insurance is one of the compulsory conditions for obtaining a trade finance in credit institutions.
After analysing the situation, we at the Marine Insurance Services did a tremendous job to engage new cooperation partners for credit risk insurance. These insurance companies with a first-class credit rating of Standard & Poor’s A + are newcomers to the Baltic market.
We offer a radically new approach to credit insurance: due to a fairly high level of deductible (self-risk / own liability in case of an insurance event), the client has the opportunity to make credit decisions oneself for amounts starting from 500,000 EUR (in case of implemented necessary internal credit procedures in the company).
The calculation of the insurance premium is made, first and foremost on the base of the insurance policy maximum annual limit (not on the turnover base).
The important advantage of our new offer is that the agreed annual limits for a particular client-buyer are irrevocable (in case of insolvency of your partner-buyer or long-term non-payment of bills to them, you will definitely not be left without the support of the insurer and, as a result, without the necessary credit support from the bank).
In the case of an insured event occurs, losses incurred as a result of the non-fulfilment of payment obligations of your clients will be compensated in almost full amount (minus the deductible (self-risk) as specified in the insurance policy).
Our insurance brokers will help you to choose the most appropriate insurance solution individually tailored to your needs. We will be glad to share with you our experience and knowledge.