credit insurance options - enterprise ireland...about tcb | 5 established in 1993. offices in...

Credit Insurance

Options

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

INTRODUCTIONS…

| 3

Peter BoucherDirector TCB

Aidan O’ConnellDirector TCB

TCB are credit

insurance specialists...

WHO ARE WE?

| 4

ABOUT TCB

| 5

Established in 1993.

Offices In Dublin, Belfast and Cardiff.

Acquired by Willis in 2014, TCB recently merged with CIMCO to create

the largest specialist Credit Insurance broker in the Irish market.

15 Experienced Credit Insurance professionals.

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

WHAT IS CREDIT INSURANCE?

| 7

Protects a company against bad debts.

Bad debt can be due to an insolvency,

protracted default or political event.

Indemnifies a company for up to 100% of

a bad debt.

Monitors a company's customers on an

ongoing basis.

Access to full management information on

companies-often not in the public domain.

Utilizes company information from large

interactive databases.

Covers costs of third party debt collection.

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

LEGACY ISSUES?

| 9

Considered to be expensive.

Time consuming administration.

Inflexible policy terms and conditions.

Insurers only cover ‘safe risk’.

Lack of "certainty" in duration of credit limit

coverage.

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

WHAT ARE THE MAIN MARKETS?

| 12

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

WHAT ARE THE PRODUCTS?

| 14

Single Risk – This is where a company insures only one buyer.

Top Buyers – This is where a company insures their top credit

lines only.

Multi-buyer – This is where a company insures a selection of

buyers.

Whole Turnover – This is where a company insures all of their

buyers.

Excess of Loss (XOL) -This is where an insured company carries

a significant level of risk retention - usually to reduce premium

costs.

Political Risk – This is where an insurer covers an insured for non

payment due to macro political events.

Advanced Payment Protection - This is where an insurer covers

against the non payment of cash advances made to suppliers.

WHAT ARE THE PRODUCTS?

| 15

Supplier Payment - This is where an insurer covers the Bank

against the failure of their customer to repay the Bank for cash

advances the Bank has made to the customer's suppliers. The

decision of which supplier to pay is made by the customer.

Supply Chain Finance - This is where an insurer covers the Bank

against the failure of their customer to repay the Bank for cash

advances that the Bank has made to the customer's suppliers.

The facility is made available by the customer, through the bank,

to it's suppliers but it is the supplier's choice whether or not to

avail of this facility.

Trade Receivable Financing - This is where an insurer covers the

Bank when they purchase or fund blocks of receivables - in both

Off and On Balance Sheet transactions. It has the effect of

securitizing the transaction.

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

WHAT IS NOT COVERED?

| 17

VAT and other Taxes.

Disputes.

Incorrect Buyers – Incorrect principle to contract.

Late reporting of overdue accounts or adverse events.

Amounts exceeding the endorsed credit limit.

Sales after the maximum period of overdue tolerance - Maximum Extension

Period.

Sales made on terms of payment not endorsed to the policy.

Incorrect use or calculation of discretionary limit cover.

Claims can be turned down for non compliance with policy terms and

conditions.

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

DIFFERENCES IN CREDIT INSURANCE POLICIES

| 19

Cancellable Cover - Most insurers can cancel or reduce cover if

they feel that the risk has deteriorated.

Non Cancellable Cover – Some insurers offer non cancellable

cover for the duration of a policy.

Discretionary Cover – Some insurers allow cover without getting

an endorsed limit - justified by trading experience, a credit report

or industry knowledge.

Blind cover – An insurance company may offer a non - vetting

policy, usually with a lower indemnity, based on certain criteria.

One particular insurer offers a fully integrated, IT driven credit

insurance system that underwrites all credit insurance limits

based on trading experience - with only the top buyers being

specifically endorsed.

AGENDA

Introductions

What is Credit Insurance (CI)

Legacy Issues

Markets

Products

What is not covered

Different types of Credit Insurance

Policies

Our clients

OUR CLIENTS – TARGETS

| 21

RETAILL CONSTRUCTION PHARMAL

AGRIBUSINESS FOOD & DRINK

HAULAGE/

DISTRIBUTION

ICT

FISH PRINT &PACKAGING

Questions?

| 22