As an informed exporter, it is important to know the major economic indicators of the countries where you are exporting. This is important to foresee if there are any possible chances of payment defaults. If there is, changes can be made in the payment terms. Hence, in order to aid this decision making process, we present the findings provided by the Euler Hermes in weekly frequency. Major indicators like GDP, sectoral development changes, major economic policies decision, sentiments after any new political appointment, bank rate changes etc. help in painting the economic condition of the country for the whole week.

Uncertainty: the new revolution in trade credit insurance

Technology and innovation; two major influences which have shaken up the trade credit insurance industry over the last decade. But, there’s another factor which is having a far greater impact in shaping the industry: uncertainty.

Uncertainty has almost become the only certainty in today’s economy, fueled by a catalogue of events which share a single adjective – “unpredictable.” Brexit, a potential trade war, China’s hard landing and the longest government shutdown in US history; it seems that each day brings something new and unexpected. The concern is the effect this has on economic growth and the ability of businesses to trade successfully and with confidence.

Unfortunately, a solid economy is rarely built upon uncertain ground, which is why we’ve seen sluggish growth and an economic climate which is once again rocked by insolvencies. The latest statistics reveal corporate insolvencies in 2018 were up 10% year on year, equating to 44 a day. And with no real clarity on what the UK will look like post-Brexit, uncertainty is on course to continue its long reign, creating an almost impossible environment for businesses for whom trade is a lifeline to survival.

While this may present a challenge to the Trade credit insurance industry, it also presents a valuable opportunity. Uncertainty has already led to an increased awareness of trade credit risks, resulting in a rise in demand for protection.

Pinnacle to business success is a robust trading strategy; ensuring company is trading in the right places, with the right customers, with the right product or service and with the right risk protection. Working collaboratively, insurers and brokers can play a pivotal role in developing this strategy with clients.

In the past, trade credit insurance was often glossed over as simply a tick-box exercise, brought into play maybe to satisfy a lender or shareholder and only called upon as a last resort should trouble arise. However, with unique insight into global trading patterns, market conditions, payment behavior’s and credit risk, Insurers are in prime position to fulfill a greater, more proactive role.

Risk is an inherent part of doing business, so uncertainty just becomes another risk to manage. Being well versed in identifying and mitigating risk, it’s very much business as usual.

A trade credit insurance policy, if used properly, provides a valuable extension to a company’s credit management practices—a second pair of objective eyes when approving buyers, as well as an early warning system should things begins to decline so that existing exposure can be effectively managed. Not forgetting that should an unexpected loss occur, the trade credit insurance policy provides indemnification, thus protecting the policyholder’s revenues, profits, balance sheet and employees from what could otherwise be a “financially catastrophic event. Trade credit insurance may be the wisest investment a company can make to ensure its profits, cash flow, capital and employment are protected.

Source : www.atradius.com