‘The Future of Trade Credit and Surety Insurance’

A new white paper ‘The future of Trade Credit Insurance’ is published by Russell Group Limited, a risk management software and service company, for which Robert Nijhout, Executive Director at ICISA was interviewed.

The white paper explores the current export and credit environment, supply chain disruption, global sovereign debt concerns, and the threats posed by non-payment and political risks. How can these be evaluated and what internal/external processes and controls can be introduced to mitigate these risks?

In the white paper, Robert Nijhout, Executive Director at The International Credit Insurance & Surety Association (ICISA), says: “If you look at the European Union during the peak of the financial crisis, credit insurers and governments worked closely together in several member states to continue offering cover on certain risks when these risks became unattractive for private companies to underwrite. Since then a very willing and eager private credit reinsurance market is stepping up to the plate as sovereign guarantors.”

Russell Group Limited Managing Director Suki Basi says: “The paper evaluates how Export Credit Agencies and Credit Insurers working closely with governments have created stability for the global market in recent years. With recent regulatory changes, current high sovereign debt levels and rising political risk levels, however, there are increasing opportunities as well as threats for credit insurers, as governments push more risk to underwriters leaving them with greater exposure levels and potential risk from future systemic events. Meanwhile, as global trade picks up to surpass pre-crisis (2007) levels, the outlook looks positive for businesses and exporters large and small, however, exposure levels are rising and need to be monitored carefully.”

Key topics discussed in the White Paper: