WBNetADD connect
Direct contact

+32 16 43 11 00


info@add.be Contact us

You are here

How to qualify for credit insurance during economic downturn

News
28 May 2020

 

Many companies that did not have credit insurance pre-Covid-19 are now rushing to find a reliable agent willing to take on their risk portfolio. This prove no easy feat, however, as credit insurers have been adopting a more stringent approach to their assessments.

Would you prefer a personal interview?

Significant changes

Before Covid-19, the world had already been witnessing signs of an economic downturn and a rise in insolvencies for years. Recognising the need for a more stringent assessment process, credit insurers had been working hard to modify their approach. The Covid-19 outbreak accelerated their efforts, resulting in the following significant changes:

  • Targeted risk actions: insured companies are asked to provide information on their buyers (outstanding balance, orders in production, payment behaviour, impact of Covid-19). This method has been known to reduce exposure to impacted buyers by 30%.
  • Setting up new contracts requires more detailed information from companies: a recent, detailed loss history, a recent aging balance with information on client portfolios and information on credit management approach are key to acceptance with credit insurers.
  • Following a downward trend in credit insurance pricing which lasted nearly a decade, premium rates are now set to increase. Given the fact that pricing was at an all-time low and considering the significant increase in risk since Covid-19, a 5 to 20% rise can be perceived as relatively normal.

 

Need help with credit insurance? ADD is at your service

While credit insurers are becoming more expensive and selective in terms of the conditions they offer, they are still open to new clients and contracts. Companies with a professional approach to credit management are almost always eligible for credit insurance at a competitive rate, provided they have suffered limited losses.

Our experts are always happy to help you negotiate the credit insurance your company needs. Please do not hesitate to contact us for a free consultation or more information.

Revisit the webinar (duration 12min): Credit insurance, a security in coronavirus times?

webinar_kvz.png

Other news and events

  • Trade credit

    Credit insurance and COVID-19: what after 30th June 2021?

    Since the outbreak of COVID-19, credit insurers have repeatedly expressed their fear of a wave of bankruptcies . But until today, the number of...
    19 May 2021
  • Corona vaccine: right to short leave, but what about your Workers’ Compensation insurance?

    Most of your employees will soon receive their invitation letter to be vaccinated. They may then go to the vaccination centre in their neighbourhood...
    06 May 2021
  • Human Capital

    Occupational accident or not? 5 frequently asked questions to the insurance broker

    Do employees benefit from the same accident cover at home as in the workplace? With more and more people working from home due to the corona crisis,...
    28 April 2021
  • Human Capital

    5 reasons to offer group insurance anyhow

    Today, about half of the companies in Flanders offer their personnel group insurance . Their number continues to grow, although there are also...
    05 March 2021
  • Fraud insurance or cyber crime policy: know the difference!

    Becoming a victim of fraud is the big nightmare of every entrepreneur. And of course, we don't need to explain to you that cybercriminals also pose a...
    11 February 2021