Credit Insurance
Benefits
- Access to unbiased credit risk experience as well expertise and analysis of buyer.
- Continuous monitoring of buyer Risks.
- Reduce your credit investigation costs.
- Opportunity to expand business into new riskier market.
- Growth within existing accounts by offering open account terms, higher credit sales and longer payment terms.
- Better financing terms.
- Reduction in bad-debt reserves thereby freeing working capital.
- Secure the company cash flow – a large portion of business failures are directly attributed to uncollectible accounts.
Coverage Under Credit Insurance
Commercial Risks
- Insolvency of buyers.
- Protracted default of buyers.
Political Risks
- War/civil war.
- Exchange Transfer delay.
- New Import restrictions.
- Interruption or diversion of voyage outside India resulting in payment of additional freight or insurance charges which cannot be recovered from the buyers.
Types of Insurance
1. Export Credit Insurance
Export credit insurance protects an exporter of products and services against the risk of non-payment by a foreign buyer. It ensures that your company is not adversely affected by the unforeseen losses by non-payment of such buyers.
Benefits
Risk on non-payment of buyers is mitigated, enabling trade promotion without credit collection concerns and facilitating increased credit sales without worrying about bad debts. Additionally, collection assistance through debt recovery agencies is provided, along with regular assessments on buyers and coverage for uncertain political risks.
2. Surety Insurance
It is a three-party contract by which one party (the surety) guarantees the performance/ obligations of a second party (the principal) to a third party (the obligee) as per agreed terms. They are designed to ensure that principals act in accordance with certain laws. Surety insurance serves as a contractual agreement that provides financial protection and guarantees that certain obligations will be fulfilled.
Benefits
If the contractor defaults on the terms agreed as per contract, the harmed principal can make a claim on the surety bond to recover losses incurred. The insurance company then has the right to reimbursement/subrogation from the contractor in the case of a paid loss or claim.
3. Political Risk Insurance
Political risks insurance is a specialized type of coverage that helps businesses and investors mitigate the financial losses that can arise from political uncertainties and government actions in foreign countries. These risks can include government expropriation, currency inconvertibility, political violence, and more. Here’s an overview of political risks insurance and its benefits.
Political risks are the inherent, intangible risks facing those doing business internationally, arising from the action(s), or inaction(s), of:
- A foreign Government or Government entity or
- The Government in Insured’s country or A third party country which:
- Deprive a company of all or part of its assets or
- Prevent or restrict the performance of a contract.
Benefits
USP
- Our services encompass regular portfolio analysis, credit limit monitoring, and timely notification of non-payments. We also keep our clients informed about industry and country-specific updates in the Trade Insurance Market and share lists of defaulted buyers to prevent risky transactions, ensuring their financial security and peace of mind.
- Right from overdue notification till final Claim settlement, we take care of each and every process like claim presentation in front of insurer, gathering documents and providing solution in case of conflict. We have a history of successfully settling all credit claims within minimum time limits.
- Advising combinations of appropriate Private insurer/ECGC cover leading to higher percentage of indemnity, lower premium cost along with hassle free administration
- Ensuring all applicable discount benefits being availed under policy.
- Designing tailor made policies as per client requirement.
- Advising and arranging top up limits on high exposure buyers.
- Industry Specific/ Country specific updates relating to Trade Insurance Market are regularly shared.
- Track on defaulted buyers is kept regularly and same is highlighted to our client.
- Constant monitoring of dues is done, buyer(s) who have long standing debts are accentuated.
- We provide end-to-end support for surety bonds. Leveraging industry expertise, we guide you through bond types and coverage. Our services include needs assessment, market access for competitive rates, prequalification assistance, risk management insights, application support and negotiation, tailored solutions, and claim assistance, ensuring a seamless process from start to finish.
- Beacon's expert team delivers comprehensive services, including risk assessment, portfolio analysis, claim evaluation, and support in routine Credit Policy activities, ensuring tailored solutions for customer needs.
- We adeptly design and tailor Credit policies to match client exposure and needs, emphasizing transaction procedures, risk stakeholders, timelines, indemnity value, and addressing challenges, ensuring seamless claim settlements.