Atradius significantly expands its single transaction cover solution to over 130 buyer countries, targeting an emerging industry of digital B2B platforms.

  • Rising demand from B2B marketplaces for embedded insurance, supply chain financing
  • Single transaction (STCI) insurance now available for over 130 buyer countries
  • Atradius and Kemiex co-developed the innovative solution to insure bulk transactions already in 2018

The strategic cooperation between Atradius and Kemiex dates back to 2018, when the two companies co-developed an innovative trade credit insurance solution for the raw materials and chemicals trade platform, operated by Kemiex.

Single transaction cover insurance, or STCI, available via the platform, is an additional service for sellers of bulk volumes that do not have a more common annual whole-turnover-policy with a trade credit insurance company, or for countries and buyers that are not included in an existing policy.

Enabled by smart algorithms and big data analytics, the new technology determines the insurance premium to cover proposed payment terms, allocates the capacity until a buyer confirms a transaction and manages post-trade procedures with the credit insurance.

The extension of STCI to over 130 buyer countries strengthens the leadership of Atradius in serving an emerging segment of B2B platforms and data-driven business models. The digital credit insurance solution of Atradius is now also commercialised to other B2B marketplaces outside the chemicals sectors.

According to the latest report by Dealroom, Adevinta Ventures and Speedinvest, there is an accelerating trend towards vertically integrated marketplaces that offer embedded FinTech and InsurTech solutions. Compared to one year earlier, global venture capital investment in marketplaces tripled in Q1 2021 to USD 28bn eventually doubling full-year investment from USD 59bn to USD 132bn.

Sources: The Future of Marketplaces 2021 , The future of marketplaces: fintech-enabled

Credit insurance underwriting traditionally focuses on annual turnovers and a portfolio of buyers, as risk and balance-sheet management for large bulk transactions requires comprehensive knowledge and capital reserves. In Kemiex, most transactions between buyers, distributors and manufacturers are agreed for full container loads (FCL) with average volumes above 20,000 kg per transaction.

To offer comparable efficiency benefits to Atradius clients with an existing annual policy, These companies can directly use their own existing policies to insure the transactions on the platform, with the same pricing and conditions, a novelty for the trade credit insurance industry.

Source:  Atradius Press Release