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Trade Credit Insurance Overview

Trade Credit Insurance Overview

Trade Credit Insurance Overview

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The Canadian Trade Credit Insurance Market

The trade credit insurance market is soft with rates the lowest seen in 20 years. and there are numerous Canadian underwriters that compete with trade credit insurance products offered by Export Development Canada (EDC) including: Euler, Atradius, Coface, AIG,  RedRock (Lloyd’s) and GCNA.

Trade Credit Insurance Underwriting Process

The trade credit insurance underwriting process is quick & easy and just requires the completion of a 2 page application which can be found when clicking here.

What You Get in Return is a Credit Insurance Management Report:

  • Identifying and quantifying the major credit and political risks of your major customers
  • Outlining the alternative approaches available to mitigate these risks and
  • Quantifying the other strategic benefits of alternate credit protection solutions.

Trade Credit Insurance History & Benefits

Although trade credit receivables are one of the largest assets on the balance sheet, this material credit risk has not historically been insured through insurance by North American companies.  This is changing quickly with credit insurance growing between 15% and 20% per year.   Companies are using trade insurance for many reasons including:

  • Helps more accurately forecast bad debt costs eliminating any material one-time loss from a large customer default, deterioration of an industry segment or a political risk event.
  • Can expand sales to customers where credit limits may be restricted.
  • Can improve financing arrangements with increased receivable margining and lower interest rates.
  • Can reduce the bad debt allowance or eliminate the negative impact on earnings of adding to this reserve.
  • Leverage the information, systems, people and sophisticated risk management tools of a major credit insurer that has a presence in every major market around the world.

To learn more about Trade Credit Insurance and how it can help protect your organization’s balance sheet connect with an ALIGNED Canadian Insurance broker today at www.alignedinsuranceinc.com

ALIGNED Across Canada   100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.

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