Insurance Products

The increase in the delinquency rate has caused it to harden the credit insurance market. This punishment has especially affected self-employed and SMEs. Spain is the largest market penetration of credit insurance and fifth in the world by size. This insurance coverage is if the debtor defaults / importer. In a context of interest rates low and a huge increase in reported failures in the past 12 months has caused the market to meet with accident rates higher than 150 percent.

The situation is not sustainable over time and that the Executive will cover part of the risk of credit insurance through the Insurance Compensation Consortium. In this way, will inject 205 million euros to cover possible defaults and expect the number of operations covered to reach 40,000 million. This measure aims to ensure the normal functioning of the trade assuming some risk of insurers, and supposedly primarily benefit SMEs. This measure is an executive decision support of credit insurance at a time like the present complex. In fact, Mapfre, Credit and Surety and Cesc, which account for about 90% of these operations, have announced that they will host the system.

Sector support is critical and we have stated publicly on Read the rest of this entry »