Trade Credit Insurance can seem complex, but understanding its core functions is key to leveraging its benefits. This FAQ-style guide provides clear and concise answers to your most pressing questions, based on insights from the Allianz Trade Guide to Credit Insurance.
Summary
Key takeaways
It's a safety net: TCI protects you from unpaid debt.
It's a growth tool: It provides the confidence to sell more and expand into new markets.
It's a complete solution: It includes risk monitoring, credit information, and debt collection.
It's a strategic partner: Allianz Trade’s global expertise and robust data network make us a leader in the industry.
Trade Credit Insurance is an insurance policy that protects a seller against losses from unpaid trade debt. It ensures that invoices will be paid, allowing you to focus on growing your business.
The process is straightforward:
Creditworthiness Review: We first review your customers' financial health and their ability to pay.
Credit Limit Assignment: We then assign a specific amount (credit limit) that will be paid to you if your customer fails to pay, which we call an indemnity.
Ongoing Monitoring: Throughout the policy period, we monitor your risks and alert you when a customer is in financial trouble, so you can act early to avoid a loss.
Payment and Collection: If your customer doesn't pay, we will pay you instead and can also help you collect the unpaid debt.
A TCI policy is not just for paying claims; its goal is to help policyholders avoid foreseeable losses in the first place. Allianz Trade provides key services including:
Credit Information & Risk Assessment: We provide market intelligence and monitor the financial health of your customers.
Debt Collection: We can also assist in collecting unpaid debts, often while helping you maintain the customer relationship.
If a customer fails to pay you on time, you simply pass their details to our Collections team. Our specialists contact your customer, and if a legal route is needed, we can handle that for you as well. Our collections network operates in 170 countries.
Global Authority: As part of the Allianz Group, our name is taken seriously. We are the #1 player in trade credit insurance globally, with a 34% market share.
Unmatched Expertise: We have over 120 years of experience and a proprietary intelligence network that analyzes over 80 million corporates' solvency daily.
Comprehensive Service: We are a one-stop shop for all your claims and collection needs.
Trade Credit Insurance is an essential tool for any business looking to secure its trade and grow with confidence. It provides a comprehensive solution for managing and mitigating credit risk, backed by global expertise and powerful data.
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