In uncertain economic times, where the risk of corporate failure has increased significantly, it's wrong to assume that choice of underwriter and insurance
product is limited. In fact, the credit insurance market has expanded and competition is intense. Increasingly, insurers are differentiating themselves through
new approaches to writing credit risk.
Recent developments include:
- Improved Certainty of Cover - A number of insurers are offering notice periods before credit limits can be reduced or cancelled. In some cases credit limits can actually be provided on a non-cancellable basis.
- Selected Buyer Cover - So that the cover provided more accurately reflects your perceived risks, it's possible to exclude from the insurance those buyers you deem to be "secure". Conversely, policies can be negotiated to insure only a handful of buyers selected by you. CRS is on hand to guide you through the pro's and con's of this.
- Availability of 'Top Up' Cover - 'NIL' or 'restricted' credit limits can sometimes be topped up through purchase of additional protection.
- Enhanced Information - All insurers recognise that reliance on historical balance sheet information is dangerous. Resource has been invested to obtain and analyse up-to-date management information.
- Excess of Loss Cover - Insurers have invested in dedicated teams to underwrite this form of cover where you, the insured party, agrees to take a significant aggregate deductible and in return, insurers agree that you self-underwrite the majority - if not all - of your buyers' credit limits. CRS is able to guide you through this structure where robust credit management procedures are paramount.
- Export Cover - There has been a recent focus on providing support for sales to more difficult overseas territories. If private market insurers cannot cover these markets, UK Government support through Department of Trade & Industry (DTI)/Export Finance Schemes may be available. CRS is accredited to place this business.
- Claims Settlement - Prompt, efficient and commercial handling of claims is often the measurement of a successful credit insurance policy. Whilst insurers continue to make investments in this key area - including on-line submissions - CRS will ensure that any claim made by you is processed as quickly as possible.
The market is constantly changing and evolving. Our role is to work in partnership with clients to ensure:
- access to policy enhancements,
- an informed approach to setting credit limits,
- a speedy settlement of claims should things go wrong.
Contact us to learn more about how these developments can positively support your business.