Partnership to widen access to trade credit insurance

Partnership to widen access to trade credit insurance | Insurance Business

Partnership to widen access to trade credit insurance
Lloyd Sadd Insurance Brokers, an independent brokerage that specializes in commercial insurance, risk management and loss prevention services, together with Canadian brokerage network Navacord, has announced its formation of a new partnership with Global Trade Credit.
Global Trade Credit is a specialty broker that works with insurers such as Euler Hermes, the Guarantee and Zurich to provide credit insurance solutions for public and private sector organizations in a multitude of trade sectors.
Managing partner Graham MacLachlan leads the firm, while also sitting on the Board of Directors for the Receivables Insurance Association of Canada (RIAC) and remaining active in the Canadian Association of Manufacturers and Exporters and the Saskatchewan Trade and Export Partnership.
MacLachlan expressed hope that the collaborative efforts will allow a greater share of the Canadian market to access trade credit services.
 “This national partnership will add tremendous value for our existing clients and to all Navacord partners who can benefit from the deep sector expertise and specialized credit insurance solutions we can provide,” he said.
Although the broker will remain in Calgary, its offerings will be available in every province.
Trade credit insurance has been predominant in European markets for years, and is now experiencing an uptick in demand throughout Canada, particularly in light of economic uncertainty and political instability. While the coverage was originally intended for manufacturers, it now has broader applications today.
“You have financial institutions using it, you have organizations with long-term contracts using it, you have consulting services using it, so it really is anyone that has a counterparty risk on an open account terms where you provide a good or service and are paid at a later date,” said Andrew Leonard, national practice leader, financial products, Marsh.
In addition to risk management, brokers can market these policies to potential clients based on their strategic benefits, which include the opportunity for companies to venture into new markets, use credit information to conduct due diligence on buyers and offer longer terms of payment to be more competitive against rivals.