Posts Tagged ‘credit’
Credit Insurance
January 2, 2012 | 
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Credit insurance is a comprehensive business risk management, based on protection against default. The effectiveness of protection is based on three guarantees:
Prevention.
The analysis service Credit and Surety, which processes more than 52 million business records constantly updated, continuously tracks the evolution of the creditworthiness of the customer base of our policyholders. Systems, studying more than 10,000 credit sales each day, set a limit on the creditworthiness of the client that links to the Company.
Indemnification.
This warranty is an essential financial support for the liquidity of the insured. Whatever happens, companies receive six months in default after compensation for the losses in those business operations that are insured.
Recovery.
The default also active mechanisms for recovery of outstanding claims. The rate of Read the rest of this entry »
Posted in Credit Insurance | 
Tags: credit, Credit and Surety, Credit insurance, Customers of Credit, insurance | 
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Credit insurance: yes or no
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 »