London, UK – January 22, 2018 – XL Catlin’s reinsurance operations today announced the publication of its Global Credit Insurance Monitor 2017, which suggests significant potential exists to expand credit insurance protection by developing more flexible and/or tailored products to support insureds.
This is just one finding that emerged from the market survey comparing the attitudes and opinions of credit insurance buyers to those of credit insurers. Others include:
- Credit insurance remains a growth market as penetration even in the traditional risk transfer segment is low. Additional growth is expected to come from the use of credit insurance as a pre-condition to obtain pre-financing of a trade deal and as a means for cash-flow optimisation.
- However, due to excess capacity currently pouring into the credit insurance market, interviewees report that exposures are rising more rapidly than premiums.
- Credit insurance buyers stated that the amount of cover they purchased in the past 12 months has either increased or remained stable – a trend that is expected to continue for the next 12 to 36 months.
Peter Schmidt, Chief Executive Asia Pacific, Latin America & Global Credit and Surety at XL Catlin, said: “As a global leader in the Credit & Surety reinsurance market, we are committed to contribute to its growth and prosperity. We are therefore encouraged by the findings of our research, which shows that credit insurance buyers believe more flexible and tailored products would be able to capture the potential from additional demand. They hope for a more entrepreneurial attitude of their insurers to support them in growing their business.”
Mr. Schmidt added: “The suggestions from credit insurers are similar. They see large potential in reducing product complexity to access the SME segment. Through improved client servicing and more reliable cover even when risks increase, they aim to capture further business from large, global clients.
Visit XL Catlin Fast Fast Forward to read more about the report.
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About XL Catlin
XL Catlin is the global brand used by XL Group Ltd’s (NYSE:XL) insurance and reinsurance companies which provide property, casualty, professional and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. Clients look to XL Catlin for answers to their most complex risks and to help move their world forward. To learn more, visit xlcatlin.com.