By Neil Botting
To help provide a more detailed insight into the broader function of credit insurance and the business benefits, the best way is to look at a real organisation and see it in practice.
Trade credit insurance is not a new concept as the first incarnation of the principles appeared more than 85 years ago with the founding of NCM in the Netherlands, which subsequently went on to become part of the global credit insurer Atradius.
Since those early days, the global commercial environment has changed almost beyond recognition, yet credit insurance has continued to be a vital component for many businesses, helping protect them from many of the risks associated with international trade, while allowing them to explore potentially lucrative new markets and opportunities.
While credit insurance is probably best known for protecting businesses from the risk of debts caused by customers’ non-payment, as a result of insolvency, protracted default and even political intervention, the scope of its influence and benefits to business are considerably wider.
To help provide a more detailed insight into the broader function of credit insurance, the business benefits and the roles of the insurance broker and the credit insurer, the best way is to look at a real organisation and see it in practice.
Understandably, many businesses tend to be quite guarded of their credit insurance and management processes, so our thanks must go to the Westcon Group, as well as their broker, Aon and insurer, Atradius, for allowing us to explore not only their respective organisations, but also their business relationship.