Event Details
The umbrella that doesn’t open? The future of credit insurance
Presented by Trade Finance Global and Tinubu
TFG has joined forces with Tinubu to present a virtual tradecast, looking at 4 different sectors of the trade credit insurance industry, and how they have been impacted by the COVID-19 pandemic, geopolitical issues and inflation.
The tradecast will touch on:
- A trade credit insurance industry outlook
- How public and private credit insurance support global economies and trade
- Risk appetite, claims, payouts: how to make trade credit work for everyone, everywhere
- Outlook, innovation and sustainability in trade credit insurance
- Expert perspective: banks & lenders, insurtechs, associations, and ECAs
The Panel
Moderated by Deepesh Patel, Editor, Trade Finance Global
864 viewers
Live Tradecast
75 minutes
Streamed on LinkedIn Live
Sponsor
Introduction
- Introduction to the panel
- Gary Lowe, global head, global credit insurance group, Standard Chartered,
- Jérôme Pezé, CEO, Tinubu,
- Janusz Władyczak, CEO, KUKE S.A,
- Richard Wulff, Executive Director, ICISA
- What is trade credit insurance is and how does it underpin global trade?
- Why do banks utilise trade credit insurance?
- How do ECAs work? What is the difference between OECD operating ECAs and ECAs based in developing countries?
Perspectives – trade credit insurance
- How has the market fared with unprecedented challenges around inflation, war and political risk and through the disruption of supply chains?
- There has been a massive wave of states withdrawing their support to private businesses, what do you expect the repercussions of this to be?
- What’s happened from a claims and payouts perspective?
- Has risk appetite changed and how has this impacted claims from a private market perspective?
Summary article: Resilience, technology, and risk appetite: credit insurance experts weigh in on current trends. Read here
Resources
Tinubu podcast: Getting Saas into surety and credit insurance
Insurtech champions – Tinubu Square named to 2021 InsurTech100 list
Risk appetite in the context of claims
- What is the current general consensus on risk appetite?
- How willing are ECAs in encouraging collaboration and sharing risk?
- How will the rise in digitalisation help mitigate common risks associated with credit insurance?
Resources
Under the spotlight: MSME access to finance in emerging and developing markets
Whitepaper: Accelerating trade digitalisation to support MSME financing
Tinubu Podcast: Future-proofing trade finance and insurance through technology
Where is the industry heading? Future outlook and innovation
- Managing capital and improving returns through less traditional avenues. Thoughts on capital calls, new economy, renewable energy and private equity
- How will customer needs be met in terms of buyers of CPRI?
- How will the capacity of risk evolve and where will this take the market?
Panel Questions and Answers
RW: Trade credit insurance is about helping to finance the whole supply chain. Whilst we do not finance, sellers in every part of the chain can and do buy trade credit insurance which enables their financiers to provide terms.
Response: Thanks a lot. What you said, it is exactly done in traditional sense. Now, we have some digitalized platforms of supply chain, the final buyer or manufacturer applies for credit and the banks issues BPO , this BPO is transferred from one chain (supplier) to the other (instead of each chain asks independently for credit using credit insurance/guarantee). So this BPO will be cashed at Bank’s counter on due date by the last chain (if not discounted in between). Now if a credit guarantee is issued for the manufacturer to receive the BPO, shall CG be transferred along with BPO via chains? Or not at the due date, just the manufacturer is responsible for honoring the debt of BPO? And if the debt is not paid, then CG will be called.
RW: Interesting thought! Would need some work as the insurance is assessed on the payment of the next debtor/link in the chain.
JP: Likely stagflation (recession+inflation), potential stress on public debt issued by already highly indebted countries, and -with a time-lag- increase of defaults by corporation in Europe, in a tense social environment. A key element regarding the timing and the extent will depend on governments and BCE policy.
Thank you to our sponsors and partners
More from the TFG’s Trade Credit Insurance Hub
- 2024 ICC Trade Register report positively upbeat despite global trade goods slowdown
The annual Trade Register from the International Chamber of Commerce (ICC) in collaboration with Boston… read more → - Sibos 2024: New Deutsche Bank and Kodex AI whitepaper shows Gen AI’s potential for banking
On Monday 21 October, Deutsche Bank and Kodex AI, a Berlin-based AI startup company, published a whitepaper on the opportunities of generative AI (Gen AI) in the banking sector. - Sibos 2024: Swift, Euroclear, and major financial institutions collaborate on Chainlink to digitalise asset servicing
In fragmented markets, there is often a lack of real-time standardised data. In response, a group of eight leading financial institutions united on Chainlink’s platform, has launched an ambitious initiative to revolutionise corporate actions processing using artificial intelligence and blockchain technology. - New digital trade “China corridor” brings transaction time from Europe down to hours
Transactions between Europe and China using trade finance documents like Letters of Credit, Documentary Collections,… read more → - What is an MGA and how does it fit into international trade?
Managing General Agents (MGAs) have emerged as an important component in the ecosystem, offering specialised expertise and flexibility. This new model of insurance providers helps to bridge the gap between insurers and the businesses they protect. - The role of credit insurance in a just energy transition
The energy transition is more than just a buzzword; it represents a fundamental shift in how the world generates and consumes energy. - BexNote: The nascent digital revolution in bills of exchange
The advent of digitalisation presents an opportunity to transform trade finance by addressing long-standing inefficiencies… read more → - Digitalisation from end to end: Lloyds Bank trade insights
The end-to-end process of international trade—from issuing documents to shipping goods and completing payments—has been labyrinthine, often mired in paperwork and delays. - TFG announces media partnership for ICISA’s Trade Credit Insurance Week
Trade Finance Global (TFG) is excited to announce that it will be the media partner for the International Credit Insurance and Surety Association (ICISA)’s Trade Credit Insurance Week from 7 to 10 October 2024. - VIDEO | What does Basel IV look like for the trade credit insurance market?
As part of the 50th Annual International Trade And Forfaiting Conference (ITFA) in Cyprus, Trade Finance Global (TFG)’s Editorial Director Deepesh Patel sat down with Carol Searle, General Counsel and Group Board Director at Texel Group, to discuss her outlook for the credit insurance market at large. - Monthly TFG & ICC DSI Column
Read the monthly TFG and ICC DSI column! Hear from leading experts in trade digitalisation and keep up with all the breaking trends. - VIDEO | How credit insurance providers are adapting to evolving trade finance demands
To learn more about the current state of credit insurance in trade finance, Trade Finance Global (TFG) spoke with Marcus Miller, Managing Director, Global Lenders Solutions Group Leader, Credit Specialties, and Marie-Aude Vesval, Global Unfunded Risk Participation Leader, Credit Specialties at Marsh.
Keynote speakers
