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Trade Credit Insurance

Trade Credit Insurance provides accounts receivable protection for a policyholder against a customer default due to financial or political events.  Companies that sell goods or provide services on credit terms are highly exposed to the risk of non-payment by one of their customers.  Trade Credit Insurance provides the policyholder with a solution to minimize credit risk protection in order to: expand sales to new and existing customers, protect against concentration risk due to the default liability of a critical customer, establish new foreign markets to increase export sales and to optimize bank financing by borrowing against the value of insured accounts receivable with a financial institution.

Features and Benefits Back To Top
  • Credit Risk Insurance (CRI): Coverage is provided for domestic and export sales within countries belonging to the Organisation for Economic Co-operation and Development (OECD) for losses arising from buyer payment default as a result of insolvency or protracted default liability
  • Comprehensive Export Credit Insurance (CECI): Global accounts receivable protection is provided for any loss arising from buyer payment default as a result of insolvency, protracted default or the failure of the exchange authority in the buyer’s country to transfer foreign currency
  • Comprehensive Domestic and Export Insurance (DECI): Domestic or global accounts receivable protection is provided for any loss arising from buyer payment default as a result of insolvency, protracted default or the failure of the exchange authority in the buyer’s country to transfer foreign currency
  • Collateralization of bank-funded receivables to secure a line of credit
  • Discounted debt collection services offered through a third-party agency
  • Support of a policyholder’s accounts receivable management
  • Validation of a policyholder’s credit protocols
  • Flexible program structures to accommodate policyholders in need of a high level of autonomy when granting credit to their customers
  • Global solutions for a policyholder that would like to outsource the responsibility of assessing a customer’s proper credit limits
  • Non-cancelable programs are available upon request
  • Local underwriting and policy servicing capabilities supported by AIU Holdings' network of operations in over 140 countries and jurisdictions
 
Strategic Partnerships Back To Top
Berne Union: We have been a member of this organization since 1999.  The Berne Union provides global market intelligence, holds educational workshops, and provides claim management opportunities, country risk and portfolio management, and is a source for industry-wide best practices. 

FCIB: As an association of executives in finance, credit and international business, the FCIB assists us in providing exporters with credit tools to manage foreign credit and country risks. 

Brazilian American Chamber of Commerce: As a member of this not-for-profit business organization, we are able to provide policyholders with an in-depth assessment of the political, social and economic operations in Brazil, one of the top international emerging markets.

STA International: We have formed a strategic relationship with this debt collection agency to provide policyholders with a comprehensive package of credit management services.  With a network of solely-owned offices across the U.S., Mexico and Europe, and affiliates across the world, STA complements the global reach of AIU Holdings to provide local debt collection services, accelerated claims resolution, real-time monitoring of accounts and competitive collections costs.
Claims Back To Top

WorldSource, a division of AIU Holdings, provides comprehensive global solutions to meet the property, casualty and specialty risk needs of U.S. and Canadian-based companies operating overseas and foreign-based companies operating in the U.S. and Canada.  As a division of AIU Holdings, WorldSource offers an unparalleled level of local expertise and local service through a network of operations in more than 140 countries and jurisdictions.

WorldSource Global Response Overview (.pdf)
 
WorldSource offers insureds specialized support for a variety of claims including domestic and foreign primary casualty, domestic and foreign property, product recall, trade credit, kidnap and ransom/extortion and political risk with claims offices in New York, Dallas, San Francisco, Dubai, Istanbul, San Juan, Croydon and Manchester.

Drawing on the extensive experience of our claims professionals, their in-depth knowledge of local laws and regulations and an established and proven network of accounting, litigation and loss control experts, we are able to effectively and efficiently manage specialized claims around the world, immediately report covered claims in-country and issue claim payments in the country and currency that works best for our clients.

We utilize IntelliRisk®, a web-based claims analysis and inquiry system, providing forecasting, allocation, communication, reporting and querying tools for companies of all types and sizes worldwide.  Data reporting can be tailored specifically to a multinational client’s needs, with reports able to be generated in 20 different currencies and custom layouts chosen from 40 data elements.

Since the inception of our Trade Credit business, we have received over 4,000 claims and paid nearly $900 million to clients with respect to approved claims.  We have achieved recoveries of paid claims from third parties of nearly $200 million.  Arbitration or litigation was required to resolve disputes in just over 20 cases.  A portion of recoveries is reimbursed to insured clients to compensate them for their participation (through deductibles and self-insured retentions) in the original loss.

Insureds can report a claim by doing any of the following:

Fax:      
212-509-9369  
 
Mail:      
WorldSource Claim Department 
80 Pine Street, 11th Floor 
New York, NY 10005 

Online:   
Click here, then on appropriate product line