credit insurance options - enterprise ireland...about tcb | 5 established in 1993. offices in...
TRANSCRIPT
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…
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Peter BoucherDirector TCB
Aidan O’ConnellDirector TCB
TCB are credit
insurance specialists...
WHO ARE WE?
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ABOUT TCB
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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?
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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?
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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?
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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?
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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?
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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?
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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
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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
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RETAILL CONSTRUCTION PHARMAL
AGRIBUSINESS FOOD & DRINK
HAULAGE/
DISTRIBUTION
ICT
FISH PRINT &PACKAGING
Questions?
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