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Spotlight On... SPOTLIGHT ON...
Export Credit Insurance
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ynn Mildner is Business Manager of Towergate Credit and Financial Risk. She has over 25 years of experience in the Credit Insurance industry as both underwriter and
broker and with Towergate works closely with the major export underwriters in the UK.
What more can you tell us about Towergate?
We offer a broad range of products coupled with our dedication to outstanding customer service. Over 5,000 committed staff are based across more than 120 offices - our knowledge centres - in the UK, offering most customers easy access to a trusted team with real product knowledge and expertise.
We employ experts in each and every field of insurance that we offer, covering more than 200 specialist insurance products; allowing us to understand your needs and to innovate, creating flexible policies that meet your requirements now and into the future.
Towergate is a growing business. Having made over 150 very carefully selected business acquisitions in just 15 years, we are confident we can offer specialist insurances in most locations.
How does an export insurance policy work?
The policy covers sales to customers, both domestic and export. Usually on a whole of turnover basis, where all the ledger is insured, but underwriters will look at single risks. The policy will typically
pay 90% of the bad debt incurred when a customer fails to pay, or when political circumstances make it impossible forhim to do so, subject to individual policy provisions.
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What are the benefits of taking out such a policy?
Often the safest way to sell overseas is assumed to be Letter of Credit or other terms which rely on shipping documents being available to initiate payment. This in itself is often fraught with difficulty when documents are lost or inaccurate. As the goods are by then overseas it can be costly to resolve, especially as demurrage charges mount.
Offering credit terms can help make a sale more competitive and secure, knowing that if the payment is not forthcoming a claim can be made under insurance.
Some credit insurers also offer international debt collection services, which can be a real headache with time differences, local law and language barriers to contend with
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Can you tell us more about your work in the field of export credit
insurance and some of the challenges you work to overcome?
My work is primarily in helping make sure the credit insurance policy fits our clients’ needs. The challenges recently have mostly arisen from the changes in economies of some traditional export markets in Europe, notably Greece and Portugal, the retail sector in Italy and even closer to home in
Connect Lynn Mildner Business Manager Towergate Credit and Financial Risks
Tel: 01908 693245
Email: lynn.mildner@towergate.co.uk Web: www.towergateinsurance.co.uk
Lynn Mildner, Towergate Credit and Financial Risks
“Often the safest way to sell overseas is assumed to be Letter of Credit or other terms which rely on shipping documents being available to initiate payment. This in itself is often fraught with difficulty when documents are lost or inaccurate”
Ireland. Even Germany has seen some high profile insolvencies in recent years.
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Have there been any substantial developments recently that have
impacted export credit insurance?
UK Export Finance, (previously ECGD) now offers cover on short term credit risk, which can help with single contracts.
What are your top tips for securing an export insurance policy?
Use a broker who can advise you about the cover the policy offers. Every business is different and a good broker will build up a profile of how your business operates and make an appropriate recommendation tailored to the clients needs.
Remember good insurance cannot fix a poor contract so also make sure a lawyer who understands overseas trade drafts your terms and conditions for you.
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Is there anything else you would like to add?
There is a lot of assistance available to exporters now, from the International Chamber of Commerce and UKTI in particular.