How to best to prepare for a risk negotiation meeting with an insurer

In a persistent uncertain environment, even if companies must manage their debtor risk correctly even if they protected by credit insurance policies.. Regular talks with the insurer and the broker will be the best way to determine the risks they can take on their debtors thus contributing to growth in sales.

Meetings between the client, the insurer and the broker have multiplied in recent years. They enable better understanding of the constraints and needs of the insured company. It is also an opportunity to exchange information about the environment and the industry.

With their broker’s help it is up to the company to choose the right timing for this meeting, avoiding crucial periods when financial partners await end of year accounts. The purpose of this type of meeting is to come away with new information and hopefully better credit limits!

To ensure a meeting is effective, preparation is the key:

STEP 1: Choose the type of meeting 

Either organise the meeting to take place at the company’s offices or by setting up a conference call.

STEP 2: Identify who will attend

Attendance by the Finance department is critical but, as the purpose here is to share information, it may be a good idea to include the Sales team thus raising their awareness of risk management as well as raising the insurers’ awareness of the company’s strategy and commercial business constraints.

STEP 3: Create an agenda

At least ten days prior to the meeting send out the list of key debtors for consideration with the amount of coverage desired. Respecting this deadline gives insurers time to update data (retrieving financial information in particular). Priority must be given to cases that represent a real challenge for the company. Remove unnecessary applications (cases in which you have a serious doubt as to their sustainability…).

STEP 4: Select a reasonable number of submissions

The number of applications varies depending on the activity and the amount requested. The list may be established in consultation with the broker who, after an initial analysis, will forward it to the company.

STEP 5: Gather all available information 

This is a time of exchange. Based on tangible evidence available, the Insurer will share his analysis and justify his decisions. Meanwhile the insured company will provide arguments relating his debtors’ situation and business needs. He will disclose his business experience with the buyer based on solid payment history records.

STEP 6: Evaluate your meetings’ effectiveness 

An exchange between the Insured and the insurance company often gives rise to a positive review of the Company’s position. The broker who attended the meeting will send the client a summary containing a list of all the applications made highlighting the position of the insurer before and after the meeting. It is therefore easier for the client to evaluate the effectiveness of the meeting.

The risk negotiation meeting is a key moment in the life of a credit insurance policy. It allows for a better understanding of its customers, a more accurate assessment of the risks involved and ultimately improves the performance of the company both commercially and financially.