EXCLUSIVE: An insurance giant has highlighted the insurance product that every broker in the country simply has no excuse not to be offering to clients.
QBE claims that every broker should be offering trade credit insurance, since it affects most of their clients and can be made part of a general insurance conversation.
“Trade credit insurance is a natural offering for a broker,” Richard Wulff, QBE Group General Manager of Trade Credit and Surety told Insurance Business. “A broker goes to a client and asks what kind of risks they have and this will include property, liability, or perhaps marine insurance if they do international trade. During that conversation it is a natural question to ask: ‘what about your trade receivables? Aren’t you worried about that?’
“The broker is seeing these clients anyway, you might as well talk about trade credit insurance in conversation.
As for the level of interest in trade credit insurance, it depends on the client’s risk management approach.
“The clients who will be most interested are either very risk management-conscious or look at their balance sheet and realises around 50% of their assets are trade receivable,” said Wulff.
“Plus, banks lend these businesses money, but they will want security against that lending. Trade credit insurance is a good piece of security for that. So this cover can also help to facilitate the financing of a company.”
In terms of brokers understanding the nuances of trade credit insurance, Wulff said on a superficial level it is an extremely easy product for brokers to grasp, but if you go deeper more expertise is needed.
“We divide our brokers into specialists and non-specialists. The specialists are the household names like Aon and Marsh. Then there are specialised brokers in this area like National Credit Insurance Brokers (NCI) who do nothing else,” he said.
Wulff added there are also a large number of suburban brokers, who are less familiar with the product and are serviced very differently by QBE by being offered a higher degree of help.