The Future Of Trade Credit And Surety Insurance
Export Credit Agencies (ECA) and Credit Insurers working closely with governments have created stability for the global market in recent years. With recent regulatory changes, current high sovereign debt levels and rising political risk levels, however, there are increasing opportunities as well as threats for credit insurers, as governments gradually push more risk to underwriters leaving them with greater exposure levels and potential risk from future systemic events. Meanwhile, as global trade picks up to surpass pre-crisis (2007) levels, the outlook looks positive for businesses and exporters large and small, however, exposure levels are rising and need to be monitored carefully.
In this white paper, we explore the current export and credit environment, supply chain disruption, global sovereign debt concerns, and the threats posed by non-payment and political risks. How can these be evaluated and what internal/external processes and controls can be introduced to mitigate these risks?