Simplicity, economy of scale, volume leverage… So many good reasons to opt for only one credit insurer partner with worldwide presence to support sales growth and safeguard against credit risks!
Yet, credit insurers’ “risk appetite”, service performance and local market knowledge can vary within the same company.
With an international credit insurance programme, splitting the risk between several credit insurers may be the best solution to get the best from the market.
Don’t settle for one credit insurer!
Several characteristics will help to determine the suitability of each insurer:
- Geographic location, by continent or country
- The risk category
- Top-up cover
- A selection of risks etc.
Market knowledge and the role of the broker are key factors for structuring such a programme.
Risk sharing, especially where co-insurance is involved, requires that the risks assigned to each insurer be clearly identified.
- Who analyses the risk?
- Who will support it?
- Who is responsible for collection?
- Who is subrogated to the rights of the insured? etc.
The “multi insurers” card is played sparingly with skill and strategy. As in any card game, it has its own place and can turn out to be a useful asset when it comes to programme optimisation!