We also often get requests from clients to exclude specific debtors from revenue insurance because it is not a requirement of their lender. There are indeed options for this. However, once excluded from coverage, a debtor is more difficult to co-insure when reports about this debtor are less rosy. Hema and V&D are good examples of this. All credit insurers currently pursue a cautious policy of accepting new risks on them.
Ensuring continuity
Another recent example is the bankruptcy of OW Bunkers. This was Denmark's 2nd largest company with a turnover of over USD 17 billion. It went through another IPO early this year and went bankrupt in November. Fortunately, two of our clients, who did business with this company, had chosen to continue insuring this giant with 7% of world trade while it was not an obligation of the financier. The credit insurer's indemnity on their largest debtor ensured the continuity of their business.
To exclude or not to exclude?
In short; to exclude or not to exclude is a choice. It is good to know that today there are many more options for tailoring claims that are often not effectively insurable by traditional revenue insurance. Our specialists look for protection tailored to the specific risk.
