Trade Credit Insurance Overview

The Canadian Trade Credit Insurance Market

The trade credit insurance market is a very small and concerntrated market with just a few Canadian insurance companies that compete with the market leading trade credit insurance products offered by Export Development Canada (EDC) and those other insurers include Euler, Atradius, Coface, AIG.

Trade Credit Insurance Application

The trade credit insurance underwriting process is quick & easy.

What You Get in Return is a Credit Insurance Management Report:

  • Identifying and quantifying the major credit and political risks of your major customers
  • Outlining the alternative approaches available to mitigate these risks and
  • Quantifying the other strategic benefits of alternate credit protection solutions.

Trade Credit Insurance History & Benefits

Although trade credit receivables are one of the largest assets on the balance sheet, this material credit risk has not historically been insured through insurance by North American companies.  This is changing quickly with credit insurance growing between 15% and 20% per year. Companies are using trade insurance for many reasons including:

  • Helps more accurately forecast bad debt costs eliminating any material one-time loss from a large customer default, deterioration of an industry segment, or a political risk event.
  • Can expand sales to customers where credit limits may be restricted.
  • Can improve financing arrangements with increased accounts receivable margining and lower interest rates.
  • Can improve cash flow and reduce the bad debt allowance or eliminate the negative impact on earnings of adding to this reserve.
  • Leverage the information, systems, people and sophisticated risk management tools of a major credit insurer that has a presence in every major market around the world.

Click Here To Get A Trade Credit Quote or to learn more about Trade Credit Insurance coverage and how it can help protect your organization’s balance sheet connect with an ALIGNED Canadian Insurance broker today.

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