Use General Craufurd's example to prepare for global trade risks

By Rob Downey

My partners normally ban the use of military or sports metaphors in explaining trade credit insurance.  They know that troubled trade transactions, defective coverage, and disputed obligations are more complicated than the black-and-white examples typically presented by wars and athletic contests.  Still, I believe the  world of global trade could use a Major-General Robert Craufurd about now.

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Credit Insurance after the Credit Crisis: The Future is Now

By Ron Doyle

Over two years ago, it was apparent that credit insurance companies were going to face problems as they abandoned their traditional underwriting guidelines in favour of more aggressive underwriting. Past credit insurance offers were priced so low that even a modest increase in claims would result in unacceptable loss ratios. This action alone deteriorated the pool of risk, and, like in the banking community, the credit insurance industry undervalued the cost of risk.

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Having difficulty processing the pain of the worst global downturn since WWII? The poets offer wisdom for the madness of the times

By Rob Downey

Last winter I said a unique restructuring was afoot in global trade, that the wise will expect the cost of risk amelioration to rise in coming years. Also, “common sense” dictates we respect anew the internal credit management skills needed to control risk hence.

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The Coface Group’s CEO discusses credit crisis effects – transparent financial information will ease trade credit

By Mark Attley

The big three global credit insurers Euler, Coface and Atradius continue to maintain their Investment Grade ratings despite the worst financial industry results in decades. At a recent meeting of the International Credit Brokers Alliance (ICBA) in London, England, Jérôme Cazes, CEO of The Coface Group, outlined his perspective on the current credit crisis and what we can expect over the coming year. Alliance members were treated to a blunt assessment of the present situation, which, if mirrored by the other two insurers, gives an indication of the scope of the challenges confronting the industry. Ironically, M. Cazes provided some hope and assurance that there is light at the end of the tunnel–versus a torch carried by the grim reaper of capitalism.

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Managing a credit squeeze – Ian Box says get debts down and review health of customers

Excerpt from ICBA Advantage Issue 2

Trade credit insurers are privy to customers’ forecasted sales as well as to reports of actual sales – so brokers see where economic expectations are met and where they aren’t across industry sectors, and gain an accurate view of the global economy. Ian Box, Managing Director of Australia-based National Credit Insurance (Brokers) Pty Ltd (NCI), has insightful opinions about the changes in banking practices, risk, bad debts and what actions to take at the business management level.

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