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Trade Credit Insurance

With Marsh’s bespoke Trade Credit Insurance solutions, reduce the impact of client insolvency and non-payment to your cash flow and expand your client base with confidence.

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Amid today’s volatile business environment, Trade Credit Insurance is not only a necessity for companies, but the right coverage must also be geared towards helping the businesses meet their strategic objectives while offering prompt support when claims arise.

 

Types of Trade Credit Insurance programs

A wide spectrum of coverage options are available from the global market. From covering your company’s entire trade receivables portfolio under one policy via whole turnover insurance to safeguarding exposures related to selected customers via key-buyer cover insurance, Marsh Asia’s trade credit team can help you identify the relevant solution based on your unique business strategy, risk tolerance and the current market conditions in your industry of business.

3 key considerations in choosing the right Trade Credit Insurance cover

In seeking the appropriate Trade Credit Insurance coverage with competitive terms that suit your business’s unique needs, it is advisable to speak to an experienced and independent risk advisor with in-depth understanding of your local market and industry, and innovative solutions to help you formulate the right structure for your business. 

Here are some key considerations to keep in mind when selecting the appropriate Trade Credit Insurance cover:

Business strategy

Your business strategy shapes your growth objectives, risk appetite and outlines your approach to maintaining financial stability. Trade Credit Insurance, with its full spectrum of solution offerings, can be integrated as a strategic tool to help you navigate the uncertainties of global trade while supporting your overarching business goals. 

Risk tolerance 

Risk tolerance plays a crucial role in determining the extent to which a business might utilise Trade Credit Insurance. The integration of Trade Credit Insurance into a business's risk management approach can be adapted to both high and low risk tolerance thresholds. Regardless of risk tolerance, Marsh’s trade credit solutions offer a way to tailor risk exposure to an acceptable level through the various scope of coverages, enabling businesses to pursue growth while safeguarding against credit risks.

Current market conditions

Prevailing market conditions play a crucial role in determining the level and type of Trade Credit Insurance coverage you should choose. It is essential to regularly assess these conditions and work with an experienced trade credit solutions specialist to tailor your coverage to match the evolving risk landscape.

Our proven track record

Global connectivity

A multinational office technology solutions company has independently managed policies with no group view of terms, and faced credit limit issues across existing policies.

Marsh Asia reviewed the insurer’s capability of offering a program with local credit limit underwriting support, harmonisation of policy terms, and online systems to improve overall back-office information management on credit risk exposures, providing the client with consistent policy terms, improved credit limit cover and a reduced cost.

Claims expertise

A leading steel manufacturer and supplier suffered a delay and subsequent halt in a buyer’s payments and made a claim. However, the client had not taken any written balance confirmation on the outstanding debt, and had made sales beyond insurers’ approved credit limit, which made their entire claim appear non-admissible initially.

Marsh Asia worked with the client and insurer to understand the situation, and recommended several methods to secure the payment. The claim was settled at 85% indemnity within the timeline stipulated by the policy as a result of Marsh Asia’s timely intervention and recommendations, reducing the losses in the client’s books.

Analytics capabilities

A leading crop protection company is required to provide extended open account repayment terms (365 days) to their customers but has an existing insurance coverage with low limit approval rates.

Using Marsh Asia’s proprietary benchmarking and analytics tool MiCredit, Marsh was able to secure better terms and conditions and significantly improve the client’s limit approvals. The client obtained more durable and flexible coverage via discretionary credit limit authority — allowing them to approve customer credit limits using their own credit procedures (below a certain threshold) instead of having to rely on the insurer.

What are some misconceptions on Trade Credit Insurance? Watch our video below which debunks 3 common myths, and insights on how Trade Credit Insurance can benefit your business in several ways.

Get in touch to receive 5 free credit limit assessments on your client.

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Learn more about how Marsh Trade Credit solutions can safeguard your assets and enable the success of your business. 

Why Marsh?

With a global network of more than 400 dedicated and award-winning trade credit specialists spanning 52 countries, Marsh’s Specialty Trade Credit Practice experts understand the culture, language, regulations, industry practices, and economic landscape across geographies to help your company manage receivables risk with cost-effective insurance solutions. Additionally, our multinational service team provides claims management and advocacy services in compliance with local insurance laws.

Our people

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Andrew Toh

Senior Vice President, Trade Credit Practice Leader

  • Singapore

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Jodi Seah

Trade Credit Sales Leader, Asia Credit Specialties

  • Singapore