Credit Insurance News

Why trade finance banks and insurers aren't happy with US Basel proposals. Global Trade Review (GTR) reported that trade credit insurers have warned that the latest tranche of Basel reforms on banking supervision, known as Basel 3.1, fails to consider the role credit insurance can play as a risk mitigation tool for lenders. The article comments that trade credit insurance in the US "has always played second or third fiddle to other credit risk mitigation tools such as loan sales or credit default swaps," with advocates for the product arguing that the implementation of Basel 3.1 is an opportunity for the US market to make better use of credit insurance for risk mitigation. "Banks are using it worldwide on this basis more regularly. So the US is another market where this could also be done," Daniel de Búrca, Head of Policy and Regulatory Affairs at ICISA, told GTR. To read GTR's article, go to https://www.gtreview.com/news/americas/why-trade-finance-banks-and-insurers-arent-happy-with-us-basel-proposals/.

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Intact Insurance Specialty Solutions has launched a trade credit insurance solution in the US. Canadian Insurance company, Intact Insurance Specialty Solutions, has announced the launch of its US trade credit insurance business, which is currently available in seventeen states. Pablo Brando has been appointed President of US Trade Credit and will lead the business from New York City, supported by Brian Lavelle, Vice President of Trade Credit US. Jay Rampersad, Intact Insurance Speciality Solutions' Head of Trade Credit for North America, commented: "In today's economic landscape, Trade Credit insurance serves as a vital safeguard against default risk, enabling businesses to operate with confidence amidst heightened uncertainty." For more information on products and services, intactspecialty.com/trade-credit. To read Intact's news release, go to https://www.intactspecialty.com/en/news-insights/news-release-detail.page?id=68905364bf5766bd697ddd2ba1ed2f11.

 

Webcast: The one thing that trade credit underwriters do that annoys brokers? Markel has published the 12th episode of its Class Conversation series. In this webcast, Simon Philpin, Head of Trade Credit at Markel International, and Graham Bristow, the Managing Director of Marsh Trade Credit UK, discuss the younger generation of brokers and what they require from their roles (especially post-COVID), examine how the broker and underwriter role has changed over the last forty years and question if brokers are confident selling particular products. They also consider what underwriters could do to help brokers grow the market and discuss "the one thing that underwriters do that annoys brokers". To watch the webcast, go to https://vimeo.com/908397552?share=copy.

 

Webcast: Xenia Broking in conversation with Atradius – Part 2. The second part of Xenia Broking's webcast, in which Xenia's Sales Director Mark Whiteley interviewed Owen Bassett, UK Risk Manager of Atradius, is now available. In this conversation, Mark and Owen discuss the year ahead, Atradius' underwriting strategy, premium rates and particular sectors to watch. Looking at 2024, Owen explains that Atradius prides itself on stability in its underwriting strategy, "so there is nothing to announce in terms of radical changes", but stresses the importance of up-to-date financial information – especially in the construction sector. Though he anticipates a general hardening of premium rates, Owen also emphasises that premium rates are "very much an individual negotiation" for Atradius. To watch the webcast, go to https://xeniabroking.com/news-and-insights/xenia-in-conversation-with-atradius-part-2.

 

NCI's Trade Credit Risk has a seasonal dip, pointing to a soft economic landing in Australia. NCI has advised that, although its Trade Credit Risk Index (TCRI) fell by 2.1% in the December quarter of 2023 – partly unwinding the steady rise in the index since the low point in the December quarter of 2021, it is still around 15% higher than a year ago. A rise in the TCRI signals an increase in credit insurance claims and indicates downside risks to the Australian economy. In addition, as an indicator of greater trade credit risk in the near term, the number of trade credit insurance claims rose by 2.6%, with a 20% fall in the value of claims lodged. The largest number and highest value of claims continue to be in the 'building and hardware' and 'electrical' sectors. To read NCI's news release, go to https://www.nci.com.au/news/trade-credit-risks-rise-has-seasonal-dip/.

 

Allianz Trade's inaugural Country Risk Atlas indicates the robustness of the global economy. Allianz Trade's inaugural Country Risk Atlas suggests that the global economy has shown robustness in 2023, with an upward adjustment in the risk ratings of twenty-one countries (equivalent to around 19% of the global GDP), contrasted with only four downgrades. This marks a significant shift from the previous year, which saw eight upgrades against seventeen downgrades. Africa has the most upgrades (10), followed by Europe (6). Overall, the global risk of non-payment for companies stands at Medium Risk – almost back to 2019 levels. Africa's average risk rating stands above three (Sensitive), while the Middle East, Latin America and Eastern Europe (incl. Russia) are close to but below three (Sensitive). Asia Pacific is slightly above two (Medium), and Western Europe and North America are close to one (Low). To read Allianz Trade's news release, with a link to the full report, go to https://www.allianz-trade.com/en_global/news-insights/news/allianz-trade-country-risk-atlas.html.

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Coface warns that global growth is still bending but not breaking (yet). Coface's latest Country and Sector Risk Barometer for Q3 2023 advises that after a somewhat turbulent 2023, "which ultimately turned out much better than expected", 2024 is shaping up to be "as decisive as it is uncertain" in (geo)political terms and in economic terms. Growth in the world economy is set to slow to 2.2% in 2024 (from 2.6% last year), with near stagnation in Europe. In this context, Coface has modified thirteen country risk assessments (twelve upgrades and one downgrade) and twenty-two sector risk assessments (seventeen upgrades and five downgrades), reflecting a significant improvement in the outlook, but cautions that the environment remains fragile and highly unstable and, therefore, uncertain. Coface notes that 2024 will be a pivotal year. To read Coface's news release, with a link to the full report, go to https://www.coface.uk/News-and-Publications/News/2024-a-pivotal-year-in-Coface-Country-and-Sector-Risk-Barometer-Q3-2023.

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Webcast: What underwriters could do to help brokers develop more business. Markel has published the 11th episode of its Class Conversation series. In this webcast, Simon Philpin, Head of Trade Credit at Markel International, and Gary Lorimer, Aon Credit Solutions Global Growth Leader, discuss why Gary decided to make the move from trade credit insurance underwriter to broker and his view of the differences between both roles. In addition, they examine how underwriters performed in 2023 and consider what underwriters could do to help brokers develop more business. For instance, Gary suggests that insurers and the industry as a whole would benefit by always putting themselves in the client's position. To listen to the webcast, go to https://vimeo.com/903499723?share=copy.

Allianz Trade has released its first Country Risk Atlas, with the UK ranked as "medium risk" for enterprises. Trade Finance Global (TFG) has reported that the UK's economy is expected to have narrowly avoided a recession in 2023, with GDP growth of 0.5% and exports not yet reaching pre-pandemic levels – making the UK an exception among G7 nations. GDP growth in the UK is forecast to remain subdued, at  +0.6% for 2024, with an expected increase to +1.5% in 2025. Inflation is on a slow decline but remains well above the Bank of England's target, with no expectation of dropping below 2% before 2025. Compared to other nations, the UK's risk rating at AA2 is behind Australia, Canada, the USA, Belgium, Denmark, Finland, France, Germany, and Ireland, all of whom are ranked AA1 (low risk). To read TFG's article, go to https://www.tradefinanceglobal.com/posts/allianz-trade-releases-first-country-risk-atlas-uk-ranked-medium-risk-enterprises/.

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Red Sea crisis: a new threat to global trade. Atradius has advised that attacks on container ships by Houthi militants in the Red Sea have driven up shipping costs by over 300%. However, while the attacks – ostensibly aimed at Israeli-linked vessels – are causing problems for shipping companies and the industries that rely on them, the impact on the wider global economy is currently limited. Atradius suggests that although most economists expect it to stay that way, at least in the short term, the longer the crisis, the more serious the disruption is likely to be. Longer and less certain supply chains will likely lead to product shortages in some sectors, and European businesses will be hardest hit in the short term. Atradius also calculates that, if the Red Sea were closed to shipping for several months, the result could be 0.7ppts added to annual CPI inflation rates by the end of 2024 (currently forecast to decrease to 4.1%, from 6% in 2023). To read Atradius' press release, go to https://group.atradius.com/press/atradius-news/red-sea-crisis-a-new-threat-to-global-trade.html.

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The UK is now ranked the 8th largest manufacturing country in the world. Xenia Broking has published its latest Market Insight report on the UK manufacturing industry. The report notes that the UK has moved up and is now ranked the 8th largest manufacturing country in the world (with a total of £34 billion invested into the economy yearly), the 14th largest for export of goods (10th in 2022), 8th for import (5th in 2022) and maintained 2nd in the service trade. In 2022, the UK's exports of goods and services totalled £834 billion, and imports totalled £902 billion, with the EU accounting for 41% of UK exports of goods and services and 47% of imports. According to data from Allianz, Atradius and Coface, there has been a deteriorating trend in non-payments this year, with the situation expected to worsen in 2024 before recovery. According to research by Atradius, invoice payments take between 45 and 60 days on average. To read Xenia's Market Insight report, go to https://xeniabroking.com/news-and-insights/sector-report-uk-manufacturing.

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Coface joins the Net-Zero Asset Owner Alliance (NZAOA). Coface has strengthened its commitment to the environment by joining the NZAOA and by signing the Principles for Responsible Investment in line with the Paris Agreements aimed at limiting global warming to 1.5°C by the end of the century. In joining the NZAOA, Coface commits to actively manage its investment portfolio by engaging the 20 main contributors to emissions to reduce their carbon footprint; reduce the carbon footprint of its investment portfolio by 30% by 2025 and by at least 40% by 2030 (compared to 2020). In addition, Coface has also already reviewed its credit insurance underwriting policy to exclude all new policies covering oil & gas-related activities (those for coal-related activities have already been in place for many years) and continues to support long-term ESG projects through its Single Risk insurance solutions. To read Coface's news release, go to https://www.coface.uk/News-and-Publications/News/Coface-joins-the-Net-Zero-Asset-Owner-Alliance.

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Pharmaceuticals Industry Trends January 2024. Atradius' latest Market Monitor for the Pharmaceuticals industry has found that global pharmaceuticals output growth slowed to just 0.5% in 2023, after "a whopping 17.3% increase in 2021 and 6.8% in 2022" driven by the massive production of COVID vaccinations. In 2024, Atradius expects global output and sales to increase by 4.6% and 5.1%, respectively, mainly driven by the Asia Pacific region. Vaccine production will continue to support growth, although at a lower level than in previous years. Atradius notes that, in general,  the industry has robust equity, solvency and liquidity. To read Atradius' news release, with a link to the full report, go to https://atradius.co.uk/reports/industry-trends-pharmaceuticals-industry-trends-january-2024.html. 

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WICI spotlight on Estelle Nunes. ICISA has published an interview with Estelle Nunes, Senior Consultant at Towergate Credit and Financial Risks, as part of its regular interview series on Women in Credit Insurance. Estelle has worked with Towergate Credit since 2010 and in the Credit Insurance industry for 37 years. She initially joined the industry in a junior role at Trade Indemnity (now Allianz Trade), then transitioned to a broking role, working for Aon (then called CIA). She has remained in a broking role for the last 32 years. To read the interview, go to https://icisa.org/news/wici-spotlight-on-estelle-nunes/.

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Apple Podcast: Wheel of Risk examines why US companies should consider if their organisation can afford to do business without trade credit insurance. On this episode of Wheel of Risk, Allianz Trade's podcast series, host Alix McCabe is joined by the Chief Commercial Officer at Allianz Trade Americas, Christina Montes de Oca, to discuss some common myths and misconceptions about the value proposition of trade credit insurance, and discuss how US companies, in particular, may be missing out on opportunities overseas. They also explain why a policy's price tag "pales in comparison to the value it provides — not only as a safety net but as an engine for growing your business beyond what you previously thought possible." To listen to the podcast, go to https://podcasts.apple.com/us/podcast/wheel-of-risk-a-podcast-by-allianz-trade/id1654532339?i=1000633450426.

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Company Watch launches new products and services. Company Watch has launched its new API and Scoring API. Company Watch advises that API & Cloud Data Access allows users to "easily connect our analytics and data directly into your internal systems." Scoring API enables users to apply Company Watch's financial scores, including H-Score®, to a user's own financial data and accounts. In addition, Company Watch told Credit Insurance News that it recently listed a comprehensive historical index of its scores on Google Analytics Hub, enabling Data Scientists and Analysts easy access to vast datasets to explore, test and develop their own insights. Find out more here: https://www.companywatch.net/api/.

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Atradius Bonding is now Atradius Surety. Atradius has announced that its Bonding division has been renamed Atradius Surety. The change is effective as of 2 January and is based on market research and a survey which showed that Surety is a more competitive and internationally recognised term. The name change will not affect the product terms used in local languages. The only change will be the logo. For more information, go to https://group.atradius.com/press/press-releases/atradius-bonding-is-now-atradius-surety.html.

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Welcome to a Day in the Life of Atradius' Lucy Stagg. Atradius has published a video in which Lucy Stagg, Atradius' Operations Manager for Commercial UK and Ireland, takes us through a day in her life at Atradius. To see what a day in her life looks like, go to https://www.linkedin.com/feed/update/urn:li:activity:7156239707637501953/.

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Company Watch releases the first episode of a new video series: Walk & Talk. Company Watch has launched the first episode in a new video series, Walk & Talk, in which Craig Evans, Company Watch's CEO, looks at current news and trends and shares an update on upcoming product launches. In this episode, Craig discusses current insolvency levels – especially the 'torrid time' that the UK construction sector is having – and predicts that the numbers of insolvencies are unlikely to change in the next six months. He also notes that the numbers of Phoenix companies are continuing to increase, as are cases of fraud, and advises that Company Watch have several forthcoming product launches. To watch the episode,  go to https://www.linkedin.com/posts/company-watch_walkandtalk-businessnews-riskmanagement-activity-7160946577962901505-IZ_S?utm_source=share&utm_medium=member_desktop.

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Congratulations
Celebrating 90 Years of the Berne Union. Congratulations to the Berne Union (BU) on its 90th birthday. Since 1934, the BU has played a vital role in supporting international trade and foreign investment. Celebrations kick-off on 27 February with a BU 90th Anniversary Stakeholder Event, which will be livestreamed for all. For more information about the event, go to https://www.berneunion.org/Events/Event/1158/BU-90th-Anniversary-Stakeholder-Event.

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CICM's Credit Awards. Congratulations to our readers and sponsors who were among the winners at CICM's recent Credit Awards:

• Credit Professional of the Year Award – Yvette Gray, MCICM of Atradius UK, received the highly commended award.

• Debt Collection Agency Award – The highly commended award was won by STA International.

• Risk Management Award – Company Watch received the highly commended award.

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Congratulations to Scott Ettien, Executive Vice President – Global Head of Trade Credit at WTW, who, after thirty years in the trade credit insurance industry, has announced his forthcoming retirement. Scott has worked in senior roles at WTW for nearly fourteen years, and, before that, worked for Atradius Trade Credit Insurance, Inc. 

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New Appointments

AIG has appointed Jack Woodruff as Underwriting Manager, Strategic & Multinational – Trade Credit. Jack joins AIG from Nexus Trade Credit, where he had worked for just over nine years – most recently as Head of UK Non-Cancellable Underwriting​.

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Allianz Trade has appointed Richard Miller as Head of Midterm for Northern Europe, based in London. Richard joins Allianz Trade after nearly ten years at Elite Insurance Company, where he was Head of Reinsurance.  

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Bondaval has announced the appointment of Ewa Rose as Chief Underwriting Officer. Ewa was previously set up and headed the trade credit business at ACE (now Chubb) before launching the trade credit, political risk and surety division at Markel. Most recently, she was a Managing Director at Aon Credit and Financial Risks Reinsurance Solutions.

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Coface North America has appointed Brandon Warren as Senior Risk Underwriter. Brandon joins Coface from Atradius, where he was a Risk Underwriter.

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Company Watch has announced that Girish Patel has joined as a Senior Account Manager. Girish brings a wealth of experience to the role, having served in the credit industry for over three decades at Equifax, Graydon and TransUnion. 

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Gallagher has appointed Joanne Turner as an Account Executive – Trade Credit, based in Birmingham. Joanne joins Gallagher from Aon, where she had worked as a Client Manager – Credit Solutions for nearly eight years. 

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Markel International has welcomed two new additions:

• Dominic Matthews has joined  Markel as a Trade Credit Underwriter. Before joining Markel International, Dominic spent more than five years at AIG, most recently as a Senior Underwriter. Dominic will be based at Markel's London office. 

• Sebastian Rice has joined Markel as Senior Underwriter and Head of Business Development for Europe. With over two decades of experience in the trade credit industry, Sebastian joins from QBE Europe, where he served as Head of Commercial Underwriting for the past ten years.

 

The Texel Group has announced the appointment of Jack Spent as Chief Commercial Officer. Jack previously worked for nearly twelve years as Head of Financial Risk Solutions at Liberty Special Markets.

 

WTW has announced the promotion of Michael Creighton to the newly created role of Head of Trade Credit and Trade Finance, Great Britain. Michael has been part of WTW since 2019, when he joined as Executive Director of Financial Solutions.

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Xenia Broking Group Limited has announced the appointment of Steven Stennett as its new Chief Executive Officer. Steven has over two decades of experience in the trade credit insurance industry and joins Xenia from Allianz Trade UK and Ireland, where he was Commercial Director.