Credit and Financial Risks Insurance

We offer a Credit Risk Insurance to our clients who operate in risky jurisdictions. Our policy normally covers the following risk areas:

  • Non-Payment

  • Non-Performance

  • Bankruptcy or Insolvency

The advantages of having a credit risk insurance:

  • Deferred Payment Terms

  • Expansion of Your Business to New Markets

  • Confidence in Dealing with New Business Partners

  • Revenue Growth

  • Investment Opportunities

  • Predictability

  • Safety and Assurance

What Is Credit Risk Insurance?

Credit insurance is insurance that is taken in order to cover for unpaid or bad debts. It has immense importance for businesses which are both local and international. Credit or debt insurance is secured usually in business to business arrangements, where the risk of financial losses is high when loans and credit is offered to corporate customers. In a credit risk insurance arrangement your business grants credit for a certain period of time, after which it is due to be paid back to the lender. However, risk of overdue payments is always present when credit terms are involved. This is where your credit insurance comes into play because sometimes the customer is unable or not willing to make the payment, and at other times, unanticipated circumstances prevent the completion of sales. In these circumstances, credit insurance helps recover credit payments and funds. Credit insurance is sometimes marketed as a credit card feature.

Credit risk insurance may refer to three main things:

  • trade credit insurance

Trade credit insurance may also be referred to business credit insurance, export credit insurance or simply credit insurance. In this insurance, the most important aspect is credit risk management that is offered by credit insurance companies or export credit insurance companies to businesses who wish to recover their overdue payments from the lost credit risks. Credit risks occur because of default, insolvency or bankruptcy of the client’s business.

  • Payment protection insurance

Payment protection insurance may also be known as credit insurance, credit protection insurance or loan repayment insurance. It equips its consumers to ensure that reimbursement of loans occurs in case the borrower passes away, becomes disabled or ill and loses his or her job.

  • Credit derivative

Credit derivative is a concept that is used in finance. It refers to a single one of the many instruments and techniques that are designed to separate credit risk and then transfer it to the respective parties.

Please note we offer our products on behalf of our key partners that are regulated by the UK's Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).