MARSH: Trade credit insurance portfolio, cleaner in 2010; the claims rate stabilizes
 In the last two years, credit insurers have revised and decreased both the exposures to countries and sectors, and to individual customers. For those interested in buying an insurance, this meant an unprecedented reduction of available credit limits. As claims size and frequency increase, both insured and insurers are pressured by claims processing and by collection of debts.
"Insurers have underwritten with caution in 2009, there are cases when some clients were not receiving the offer or were offered under highly restrictive conditions. Thus, portfolio of insurers is "cleaner" than it was in the same period of 2009, and the claims trend is of stabilization-decrease", says Cristian FUGACIU, General Manager of broker MARSH Romania.
According to the leader of MARSH, "the clients are increasingly aware of the risk of non-payment they are exposed to. The interest of customers is obviously higher than two years ago. If we do an analysis of the evolution of the number of mediated policies on this segment, it grew compared to the previous year".
Unfortunately, Cristian FUGACIU adds, "budgets alloted by companies for insurance are not very generous, the profit margins are reduced and decisions on new acquisitions are taken with difficulty. So, many times, despite the concern to protect themselves against non-payment risk, customer decision is not to buy such a policy, the motivation being related to costs, even in the conditions in which they are accepted after the risk analysis made by insurers".
Globally, at the beginning of this year, trade credit insurance market has experienced a gradual decline of the premium tarrifs in most countries, while the credit limits approved by insurers were increasing. The tendency was maintained in the second quarter of 2010, according to MARSH Romania.
Author: Andreea IONETE
on 31.08.2010
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