Trading credits insurance

In an increasingly competitive retail markets, suppliers are forced to adopt payment schemes that are used around the world — by installment or deferred payment.

Deliveries with a deferred payment become one of the most effective ways of market penetration and retention of own market segment; for buyers and customers, the choice in favour of a particular supplier or manufacturer is increasingly dependent on the willingness of the former to grant the right to pay by instalments.

However, with increasing volumes of trade credit, supplier’s risk associated with delays in payments or even non-payment for goods delivered increases as well.

Any company is interested in minimizing this risk and ensuring payment for goods from the counterparty. In other words, the company needs a model that will ensure protection of trade.

AlfaStrahovanie offers a civilized way of protection against risks involved with deferred payment trading — trade credit insurance.

Trade credit insurance is designed for large and medium-sized companies that sell their products and services on the territory of the Russian Federation under deferred payment condition.

According to the requirements of Russian legislation, risks can be insured only in favour of the person who enters into an insurance contract.

The subject of insurance is property interests of the Insured arising from the possibility of loss due to inability of the counterparty (the debtor) to fulfill (or improper fulfillment) of the contractual obligations to the Insured.

Insured accident of trade credit insurance is the infliction of losses upon the Insured resulting from:

• Insolvency (Bankruptcy) of the Contractor of the Insured;
• failure to fulfill the obligations by the Contractor of the Insured due to force majeure;
• prolonged delay in payment from the counterparty.

Features of trade credit insurance:

• Insurance of the total amount of business involved in deferred payment contracts with all buyers;
• information about insurance is kept strictly confidential;
• payment of the insurance compensation of 80-90 % of the amount of the contract;
• provision of insurance coverage for delay of payment for a period up to 270 days.

Advantages of AlfaStrahovanie trade credit insurance:

• loss reduction in business;
• sales increase, costs reduction of costs for business development;
• increase of the competitive advantage in relation to the other players in the market;
• qualified risk assessment and checking of the Counterparties of the Insured;
• individual approach to each Policyholder, which allows to take into consideration all the peculiarities of each client’s business in order to offer the optimum variant of insurance coverage to the Insured.

For more information on insurance trade credits, please call +7 495 788 09 99, ext 5162 — Alexandrina Eliseeva. Or send an e-mail at EliseevaAY@alfastrah.ru