Trade credit

In an effort to secure business development and financial security, global businesses seek alternatives for managing and mitigating the credit risks associated with their customer portfolios. Collaborate with an insurance company that develops innovative solutions through data analysis and a broad knowledge of international regulations and practices. Zurich specializes in creating customized policies for various markets where your company operates.

 

Why Zurich?

Named “Best Private Insurer” by Trade Finance™ magazine for ten years straight, Zurich offers an in-depth understanding of emerging markets. Our approach is grounded in the experiences and relationships that have made Zurich one of the leading underwriters of trade credit insurance for investors, multinationals, exporters and international financial institutions doing business in emerging markets. Zurich's worldwide presence can offer your business a safety net in emerging markets by insuring your risk.

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Solutions for trade credit

Trade credit

In the event of a political conflict or trade issue, Zurich offers trade credit solutions to domestic suppliers, service companies, exporters, commodity traders and financial institutions.

Coverages with terms up to seven years give insureds the ability to offer extended or deferred payment terms, which are often essential to build relationships with emerging market customers. Zurich also structures single-obligor policies, with capacity up to USD $75 million per transaction — so each deal receives the attention and the insurance protection it merits. 

Zurich’s structured single transaction policy provides protection against the non-payment of a specific obligor for: 

  • Buyers insolvency
  • Protected defaults 
  • Political events  
To enhance coverage terms, capacity and flexibility, Zurich’s trade credit policies have non-cancellable limits for the duration of the policy period based on a predetermined fixed premium rate set at the beginning of the policy. 

Zurich collaborates with export credit agencies and multilateral institutions to optimize trade credit coverage for insureds. Customized for a wide range of emerging market transactions, Zurich’s trade credit insurance provides an alternative to costly country risk reserves and syndicating credit exposures through a centrally managed policy.

Short-term multibuyer trade credit

The volatility of global financial and political landscapes has increased risks for manufacturing and wholesale companies trading domestically as well as internationally. Mitigate financial risk with insurance protection for nonpayment of commercial trade accounts receivable from unexpected and catastrophic losses due to insolvency, protracted default and political risks.

Some key product features include: 

  • Non-cancellable limits — Zurich credit limits are in force for the duration of the policy period; once a limit is approved, it cannot be withdrawn or reduced mid-term
  • Significant capacity available — Up to USD $250 million policy limit of liability and up to USD $110 million per buyer per policy
  • Flexible coverage — Available for both domestic and export sales
  • Flexible and customized underwriting approach — Zurich’s policies are tailored to help meet the unique needs of your business profile and operating environment
  • Policy types — Whole turnover (excess of loss), key account, single buyer, top up (excess of primary), multi-insurer syndicated programs and receivable purchase programs
  • Global capabilities — Ability to roll-up international policies under one global policy or issue separate policies written on local or non-admitted Zurich entity paper

Knowledge Hub: Trade credit

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