Trade Credit Insurance policies protect financial institutions from nonpayment on trade finance and supply chain financings.
- Policies also cover a variety of the cross-border direct trade financing exposures of financial institutionsCoverage is up to 90%
- Coverage can be short-term or up to five years
- Our minimum premium on Financial Institution products is $10,000
Our main Financial Institution policies are:
Single Obligor Credit Insurance Policy (Buyer Credit)
Provides insurance against non-payment of trade finance loans to a single borrower. Please read the Payables Financing Coverage brochure for more details.
- Import/export financing
- Pre-export financing
- Advance payment financing
- Non-cancelable* limits during the policy period
Purchase of Receivables Policy
Protects financial institution against non-payment of trade accounts receivable purchased from a seller of goods or services. Typically the seller enters into a purchase agreement with the financial institution and may act as the collection servicer. Please read the Purchase of Receivables Coverage brochure for more details.
- Financial Institution can "pass back" co-insurance to the seller
- Premiums payable only on actual purchases
- Policies cover one or multiple buyers
- Buyer credit limits are approved by the insurer
- Low upfront premium with monthly payment and up to 90% coverage options available
Trade Payables Financing Policy
Protects a financial institution that funded a buyer's payment of trade accounts payable (Reverse Credit) from non-reimbursement. Please read the brochure for more details.
- Premiums payable only on actual fundings
- Buyer credit limits are approved by the insurer
Bank's Letters of Credit Policy
Provides insurance against non-honoring of bank's confirmed letter of credit. Please read the Letters of Credit Policy brochure for more details.
- Non-honoring of ILC coverage for political and commercial risks
- Can cover single or multiple issuing banks in one country
- Non-cancelable* limits during the policy period
*Non-cancelable limits: subject to policy terms and conditions, after issuing the policy the insurer may not unilaterally reduce any country or buyer limits, except for non-payment of premiums.