Business Money
® Name of lender
Credit Insurance Tel / Fax / www Atradius
T: 0800 212131 F: 029 2082 4339
www.atradius.co.uk
Coface
T: 01923 478111 F: 01923 478101
enquiries@cofaceuk.com www.cofaceuk.com
Credit Indemnity & Financial Services
T: 020 7903 7300 F: 020 7903 0590
info@creditindemnity.com www.creditindemnity.com
Euler Hermes UK plc
T: 0800 056 5452 F: 020 7860 2455 enquiries@euler
hermes.com www.eulerhermes.co.uk
HCC International Insurance Co plc
T: 01664 423333 F: 01664 424892
creditsales@hccint.com www.credituk.hccint.com
Time est. in UK
UK premium income
Since 1918 Not disclosed Policies available
Domestic and export credit insurance and receivables management. Structured credit and political risk solutions. Worldwide recoveries and collections. Business intelligence services.
Since 1993 Not disclosed
Whole turnover domestic and export credit insurance, key account, specifi c account, political risk, performance bonds and duty deferment guarantees.
10 years Not disclosed
Whole turnover, commercial risk, commercial and political risk and aggregate first loss with either a fixed premium or variable rate premium.
Strengths
Atradius provides trade credit insurance, surety and collections services worldwide, and has a presence in more than 40 countries. With total income of more than 1.7bn and a 31% share of the global trade credit insurance market, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.
A global provider of credit management solutions with a direct presence in 67 countries and local service provision in 97 countries. Other services include receivables fi nance, receivables management, business information, corporate ratings. Coface has a database of 50 million companies with an exclusive company identifi cation process.
CIFS is part of the Novae group plc and trades as a division of Novae Underwriting Services Ltd. Underwrites on behalf of Novae syndicate 2007. Holds an A (Strong) Standards & Poor’s rating. Flexible and innovative approach with prompt claim payments. Unique Internet system for fast credit limit delivery and easy to use policy management.
Since 1918 Not disclosed
Whole turnover, excess of loss, key accounts for domestic and/or export sales including political risk. Specialist terms and dedicated policies for SMEs, mid-large corporates and MNCs.
Since 1982 Not disclosed Whole turnover, single risk, key account, factors/ discounters policy.
All information © Copyright Business Money Ltd 2010
Part of Allianz, the Euler Hermes Group is rated AA - by Standard & Poor’s, has a 36% market share, monitors the financial health of more than 40 million businesses worldwide and protects more than EUR 700bn of business transactions. Offices are present in over 50 countries on five continents, offering local support to clients and knowledge of local risks. Additional receivables management tools available include credit opinions, bonding and commercial debt collections.
HCC International Insurance Company plc is an organisation with experience stretching over three decades, providing credit insurance to businesses in the UK. Rated AA by Standard & Poors.
The information in this table is updated every month. The Guide to Business Money Tables is on page 74 OPPORTUNITIES FOR GROWTH STILL EXIST
recession. The impact of this could be catastrophic – especially for companies across EMEA who have a strong export business. Everyone is aware most governments have now reviewed their original stimulus offerings, and in general begun to reduce or withdraw these facilities. Where then will companies turn to find
F
certainty around their day-to-day commercial trading activities? Will bank products alone support growth? Are trade credit insurers prepared and able to offer the required limits to deliver the needed cover? Historically, companies have embraced both banking and insurance solutions – a confirmation or guarantee from a bank will suffice for long-term larger or one-off contracts, but the administration attached can be onerous. Portfolio solutions are available, but today are more likely to be enhanced with a commercial insurance package behind the up-front proposal. Bank’s have received a lot of criticism around their willingness to extend funding. However most are keen to support growth, but still follow their own due diligence procedures to off-set any potential losses. Trade credit insurers too have had their critics. Their ability to cancel or reduce credit limits
62 November/December 2010
inancial markets remain concerned about the potential for a double dip
mid-term being the greatest concern of most purchasers. However, a growing appetite, a greater level of assessment and understanding of the risk, and a recent competitive element which includes new entrants within the credit insurance industry, have all helped to increase capacity levels across almost all industry sectors and geographies.
In addition to the private market are export credit agencies (ECA’s) – the in-country private and sometimes government sponsored insurers supporting local export sales. ECA’s can provide contract guarantees, loans, project finance, along with trade insurance. Their primary role is to take away the risk associated with an export transaction. Normal tenors of up to five, seven or even 10 years can be considered subject to normal insurance policy conditions. We have noted in my previously articles insurers up-grading their infrastructure, and this continues to improve. Closeness to risk, exposure reviews, risk weighting calculations have all increased capacity… but for exporters it is the insurer’s ability to support new markets, or geographies where financial or regulatory information is scarce that offers greatest value. Insurers are investing in risk assessment in emerging markets, making sure the uncertainty of trading in these countries reduces. Exports across EMEA as well as into emerging markets are critical to the region
Business Money
making continued progress out of the recession. Trade credit insurers recognise these important markets and are keen to understand the elements of risk associated with these transactions and to encourage companies to expand in this direction. The political risk market is also more competitive, with increasing tenors, new capacity and cover on historically difficult markets. The combination of these positive developments, continue to offer support for exporters within EMEA. Whether the threat of a double dip becomes
reality, whether companies find comfort through the support of trade products to provide a pathway through the fragility of the current global economy, one thing is sure – there is now far more accurate information available to all, and with greater information and transparency comes an opportunity for companies to choose a route previously unknown or considered too risky. With this additional knowledge comes the reality that well run companies, with a robust risk procedure, will continue to operate well, despite the economic situation. In these still difficult times, opportunities for growth continue to exist, and companies choosing the correct solutions for risk assessment will continue to be successful.
Tim Smith, leader, Marsh’s Trade Credit Practice, e-mail:
tim.j.smith@
marsh.com
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