Credit risk is present across all industries and the risk of contractual default affects all organizations,. Today, organizations are increasingly exposed to credit risk in both developing and established markets.
It is often difficult to foresee emerging risks. Increased risk volatility often leads to a rise in failures to deliver or pay, which translates into heightened credit risk.
JLT's diverse, global and creative
team of specialists works as your agent and problem solver to overcome concerns or challenges, and delivers strategies to leverage your business volumes.
We believe insurance contributes to the growth of your business, as well as provide crucial protection in unstable circumstances.
We find opportunities where others see challenges. Our entrepreneurial culture and market-leading
analytical ability helps our clients to identify and realize opportunity in volatility. KEY RISKS
WHAT WE DO
We collaborate with our clients to ensure their businesses are positioned to take advantage of uncertainty and realize opportunity.
The insurance market is now globally recognized for offering products that enable
financial institutions to manage and extend country and counterparty limits, achieve credit enhancement, and realize regulatory capital relief.
For our clients, we recommend a consolidation and alignment strategy to analyze and mitigate risk across the supply chain and create a connected approach across applicable insurance programs.
For credit and performance risks, we recommend the following:
Review: Of your current credit insurance policies
Analyze: Portfolio credit risk and define credit risk appetite. Assess pre and post-delivery risks related to your open account receivables and supply chain, aligning credit and performance risks with other areas of insurance
Develop: Unified approach to your risk mitigation strategy, to optimize insurance across different geographies and insurers, while ensuring alignment and consistency with your internal procedures.
Our international footprint, agility, and co-ordinated approach enable us to service clients, and access insurance markets across the glove. We leverage our market position and the strength of our relationships with the 60+ global insurers offering cover for credit and performance risk to deliver the best results.
We are creative and rigorous - our credit and performance risk management team works in collaboration with our
political, security, and analytical specialists to ensure all inherent risks have been considered. FAQs
What information is required to go to the market to consider initial discussions for credit/performance risk insurance?
We provide a proposal form to complete, which we can then take to the market.
Alternatively, we may request:
Details of the counterparty
Contract terms and conditions
Information about insured goods/services
Law and jurisdiction
Experience you have had with the counterparty.
For short-term trade credit insurance multi-buyer policies, we ideally require a list of all customers, credit limit requirements, annual sales, and payment terms.
For payment default by the obligor, what do I need to provide as proof of loss?
There are some standard template proof of loss forms, which are usually included as an appendix in a policy. If your policy has one, then it will need to be completed and submitted to JLT.
If no proof of loss form is included, then the provision of proof of loss must include the following:
Written confirmation by the insured that there has been a default under the insured transaction (email is sufficient)
Proof that your organization has taken measures to retrieve the overdue payment from the obligor, such as copies of emails or letters chasing payment
Summary of action taken by the insured to pursue payment from obligor
Supporting documents – contracts, correspondence, etc. concerning activity to mitigate loss.
In addition to the above, there may further information relating to the insured transaction that is requested by underwriters in order to process the claim. This will vary depending on the specifics of the policy wording.
Clients wishing to purchase insurance for credit and performance risks need to ensure that they select a broker with the relevant skills, knowledge and expertise in their business sector.
We believe insurance contributes to the growth of your business as well as provide crucial protection in challenging circumstances.
As a CPS client you will benefit from:
Access to a diverse global team that delivers creative, comprehensive risk and insurance solutions which facilitate growth, reduce capital costs, improve returns, and secure people and assets
Ideas and products that positively impact and inform risk mitigation and risk transfer strategies, as well as business decisions
Our ability to create capacity to underwrite new and evolving risks
analytical tools to ensure our clients have access to complete, accurate, and real-time information to enable fact based decision making Experienced resources available where you need them without geographical or financial barriers
Consistent engagement through advisory, structuring, placement and claims, drawing in management leverage and technical expertise to ensure that when losses do occur, we maximize recovery and minimize the impact on your operations.
We deliver results. We deploy all resources to help resolve complex losses and deliver claim payments.
Our clients have confidence that the insurance policies we arrange are expertly structured and written by experienced insurers with strong track records in paying claims.
Our approachable brokers work alongside our meticulous CPS claims professionals who specialize in handling, managing and negotiating claims.
In the event of a loss, we provide:
A single point of contact with overall accountability for all losses wherever they occur
Our proactive claims handling process help maximize your recovery under your program, while minimizing the intrusion and interference to your on-going operations
We leverage our strong relationships with major leaders, loss adjusters, and lawyers to help expedite the claims process
Our clients have access to our sophisticated pre-loss consulting and effective post-loss recovery services.
Our starting point when structuring a new policy is to precisely understand your needs. Our brokers sit alongside a team of risk analysts drawn from security, technical and academic backgrounds.
Their substantial knowledge is utilised to help us understand the precise nature of your risk profile, thereby assisting us in determining the right insurance solution for your requirements.