Photo by Sebastian Herrmann on Unsplash
The country’s leading non-life insurance company, Malayan Insurance Co, Inc. (Malayan Insurance), partnered with Atradius, one of the largest, reputable international firms in trade credit insurance to help thousands of local and international commercial businesses.
The collaboration was announced by Paolo Y. Abaya, President and CEO of Malayan Insurance during a media briefing at the Hexagon Lounge of RCBC Plaza in Makati.
At the same time, representatives of Atradius, Eric den Boogert, managing director of Atradius in Asia; Michael Frigo, director of Atradius in Southeast Asia; and Jetse van Hee, head of Channel Development of Atradius in Asia, explained their global expertise in the trade credit insurance sector, and the range of benefits it offers to customers.
Mr. Paolo Abaya, President and CEO, Malayan Insurance Co. Inc
Below are some insights into trade credit insurance:
What is Trade Credit Insurance?
Trade Credit Insurance (TCI) is a type of insurance that protects your business from the risk of non-payment of invoices. Also called accounts receivable insurance or debtor insurance, TCl helps businesses manage and protect themselves from the risk of their clients’ inability to pay for the goods or services they acquired.
What type of risk does trade credit insurance cover?
Trade Credit Insurance protects policy holders from two kinds of risks: Commercial Risks, particularly protracted defaults or the failure of buyers to pay the contracted debt within a given time period calculated from the due date or extended due date of a debt, and insolvency, which occurs when a business or individual is in financial distress and lacks the funds to settle its financial obligations. TCt also covers policy holders from political risks.
What type of companies typically use/need trade credit insurance?
Trade Credit Insurance is quite useful in a variety of industries. TCI can be particularly beneficial to companies involved in Information Communication Technologies (ICT) and Business Process Outsourcing (BPO), Food and Beverages, Pharmaceuticals, Packaging, Fruit Exporters, and Plastic, Textile, Steel and Paper Manufacturers. It is also advantageous to business sectors such as Advertising, Agriculture, Automotive, Domestic Appliances, Arms and Ammunitions, Animal Feeds, Cereals, Dairy Products, Fish, Education, Finance, Flowers and Plants, Healthcare, Scientific Equipment, Telecommunications, Tobacco, Wholesale, Rubber, Meat, Fruit and Vegetables and other Food producers, manufacturers and distributors.
What benefits do companies in the Philippines get using this product?
Having a Malayan-Atradius Trade Credit Insurance protects businesses from incurring losses due to the non-payment or slow payment of customers, insolvency, and political disruptions. Policy holders also stand to gain enhanced credit management, improved financing, speed, and most importantly, protect their balance sheet. Our clients will also have access to the latest portfolio management tools, Atradius Atrium and Atradius Insights.
Can Trade Credit insurance help companies access financing?
Companies that are covered by Malayan-Atradius Trade Credit Insurance are better protected from potential commercial risks as well as political upheavals. This additional layer of protection is considered a huge plus by lending and financing companies that clients usually receive favorable terms from lenders with credit insurance policies.
Present during the event are (L-R) Mandy Velaquez, Underwriting Head, Marine & Misc. Casualty, Malayan Insurance Company, Co. Inc.; Arlene Calimag, Underwrtiing Line Head, Malayan Insurance Company, Inc.,; Paolo Abaya, President and CEO, Malayan Insurance Co. Inc.; Eric Den Boogert, Managing Director Asia, Atradius; Jetse Van Hee, Head of Channel Development Asia l, Atradius; and Michael Frigo, Director Southeast Asia, Atradius.
TCI has been widely used by companies in overseas markets like Europe and the United States to help them manage and mitigate their risks. The International Credit Insurance & Surety Association (ICISA) stated in a report that the global trade credit insurance market reached a premium volume of USD 13.89 billion in 2022 alone.
In the Philippines, Malayan Insurance and Atradius hope to increase TCI utilization by leveraging and maximizing both insurance giants’ expertise in identifying, managing, and alleviating risks.
Aside from the guaranteed protection from non-payments, prospective Malayan-Atradius clients will also have better opportunities for growth since they can now offer credit terms to customers, avail better financing terms from lenders with credit insurance policies, maximize credit management tools, gain quick access to relevant business information, and receive assistance in managing client portfolios.
To learn more about the Malayan Insurance-Atradius trade credit insurance product, visit https://malayan.com/ or the nearest Malayan Insurance branch.
