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Trade Credit Insurance

Trade Credit Insurance protects the accounts receivable of 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 in order to: expand sales to new and existing customers, protect against concentration risk due to the default 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
  • Local underwriting and policy servicing
  • Flexible program structures to accommodate clients that want a high level of autonomy when granting credit to their customers or a client that wants to outsource the credit decision making process to AIG Trade Credit
  • Discounted debt collection services offered through a third-party agency
  • Non-cancelable programs available
  • Provides an insured credit limit for a customer and monitors portfolio performance during the policy period
  • Supports a company's accounts receivable management and validates credit protocols
 
Claims Back To Top
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.