Monday
Dec212009
What you can’t see can hurt you: Keep the blood supply flowing to your business with appropriate credit insurance
Monday, December 21, 2009 at 10:20AM By Ron Doyle
In 2008, major international credit insurers paid out or reserved over 4 billion euros in claims. In Canada, Canadian credit insurers, including Export Development Canada, paid $183 million in claims and so far this year, over $10 million in claims have been paid to Millennium clients alone.
These numbers are staggering and definitely show that credit insurers do pay claims, but more notable is that the shipments that resulted in these claims were made prior to 2008, before the effects of the present-day recession became evident. The beneficiaries of these claim payments bought credit insurance, as a prudent risk management decision, when risks were low and insurance capacity was available at a very reasonable price.