Credit insurance body pats itself on the back

ICISA claims credit insurers have been supportive during the global economic crisis and pledges commitment for the future

Keeping the flow: Credit insurance trade body ICISA has praised its handling of the economic crisis

Credit Insurers have lived up to expectations and paid out claims at a ratio of 84 per cent, its trade association has claimed.

Earlier this week, International Credit Insurance and Surety Association (ICISA) president Clemens von Weichs and executive director Robert Nijhout, spoke on trade credit insurance’s role in recovery from the financial crisis.

Both also claimed trade credit insurers demonstrated their ability to respond to the difficult economic situation, despite the cost of capital and a tightened risk environment, which has led to higher premium rates and stricter conditions.

The pair also claimed that higher transparency about credit limit decisions and enhanced services in risk management consultancy for clients will be a strong focus for credit insurers in the future.

Available capacity was not affected by the financial crisis, but pre-crisis terms are no longer available, they claimed.

The [credit insurance] industry’s involvement is illustrated by some 20 million running credit limits. Insured exposures are at €1.8tn (£1.56tn),” Von Weichs said. “These dropped by some 10 per cent in 2009, in line with lower trade volumes. Claims shot up in 2008 and 2009, which resulted in a claims ration before costs for the sector of around 84 per cent for 2009, compared to pre-crisis loss ratio levels of around 40 per cent to 60 per cent. The market is now in a stable but still challenging situation.”

Nijhout, affirmed the industry’s commitment to their customers.

“Trade Credit Insurance has existed since the beginning of the last century. Credit insurers went through economical downturns or financial crises together with their customers. The industry will continue to give this support to their customers,” he said.