BIIA invited its member Jerome Peze to be a panelist in the BIIA Forum 2011 session: The future of trade credit and the implication on information services.  In this session a team of panelists discussed the role of credit management tools in the financial crisis, which worked, which did not and what are the implications for credit information post credit crunch.

Jerome Peze highlighted the problems of the credit insurance industry during the crisis, but stressed the fact that notwithstanding the high loss ratios the credit insurance industry did not require a bail-out.  He pointed out that the credit insurance industry was becoming global.  It is expanding from its traditional base in Europe and he sees a large potential in almost untouched markets.  There was lots of room for value creation and a strong potential for differentiation.  However this will not be accomplished without the availability of accurate, reliable and timely information.   

In a credit management / underwriter survey conducted by BIIA in early 2010 underwriters felt that financial statements were rendered useless because the liquidity crisis caused supply chains to collapse rather quickly.  We had asked Jerome Peze about the future role of financial statements post credit crunch.  His response was that financial statements are always a useful component in risk assessment; nevertheless it will not be the only one.  There are other important factors used in an underwriting decision.

The session provided valuable insights for members.

To view Jerome Peze’s key message to BIIA members click on the attachment:  Peze BIIA March 2011

Tinubu Square designs and manages innovative solutions for credit risk management, credit insurance and receivables financing intended for companies and Multi-National Groups.  Since the ASP (Application Service Provider) “Risk Management Center” platform was launched in 2002, Tinubu Square has been constantly improving its functional perimeter and has been increasing its performances. The “Risk Management Center” – modular and comprehensive solution to credit risk management, connected with the systems of policyholders, insurers, suppliers of financial information, banks and brokers – has been adopted in Europe by the largest international players.  Tinubu also provides special debt collection services.