1. Emerging markets turnover policy: improved competitiveness for exporters
With the new Emerging Markets Turnover Policy, Dutch exporters can better compete with foreign companies with the backing of credit insurance. And thus further expand their sales in these emerging (and therefore sometimes challenging) countries.
The policy has a coverage ratio of up to 90 per cent and a term of one year. Under the policy, the exporter insures all exports on a chosen country. After the term expires, the exporter can choose to renew the policy and add or remove countries.
2. Single Risk: protection against a single debtor
For a very long time, credit insurers only offered the possibility of covering an entire portfolio of debtors. This is because the classic credit insurer is based on the spreading principle. Here, all debtors of a company are included in the insurance solution. This ensures a mix of good and less good risks, which gives the insurer a degree of comfort.
There was an increasing demand from the market to insure only a few debtors or even just one debtor. This would involve a debtor with whom the individual outstanding balances are particularly high, so that the financial loss in case of non-payment is also high. This desire from the market has prompted some insurers to offer so-called Single Risk solutions. These offer protection against insolvency of one or a limited number of debtors.
3. Non Cancellable: more security for the client
Within traditional credit insurance, the insurer has the option of reducing or even withdrawing the credit limit. If this withdrawal or reduction relates to a large and important debtor, this can lead to financially dangerous situations.
As more and more companies feel the need for extra security, some insurers introduced the so-called Non Cancellable-limits. These are covers with non-retractable limits for a maximum duration of one year.
4. Top Up: additional third-party coverage
Sometimes an insurer approves a credit limit application only in part. However, many companies want the full credit limit covered. Especially for those companies, the Top Uppolicy introduced.
When the primary insurer provides insufficient limit on a debtor, a third party may provide additional - temporary or permanent - cover. Usually, this third party takes over the terms of the primary credit insurance.
Want to know more about credit insurance or any of the above customised solutions?
