Mid-term
credit insurance
Underwriting criteria
Target Clients/ Policy Holder
Any italian company that sells on credit in Italy or abroad, with mid-term payment deferral
Elegible policies
All supplies of good & services sold with payment in installments up to to 60 months (maximum)
Max transactional volume
None – no limits
Commodity sector
Production and sale of goods and services
Risk eligibility
Any type of company, private or public, with an entrepreneurial activity
Geographical area
All geographical areas are potentially eligible depending on Country risk rating assigned (revised every 3 months)
How the insurance cover operates
Validity of the guarantee
For the entire duration of the operation and non-revocable
Events that can cause
the filing of a Claim
- Inability to supply due to the cessation of activity with dissolution of the company
- legal insolvency of the buyer Risk of non-payment following delivery of the goods supplied
- legal and de facto insolvency (with increase in premium)
Guaranteed risks
- Commercial
- Political (export)
Coverage
Up to 90% of the insured contract
Insurance premiums
and additional costs
Insurance premium: payed in advance through a single payment
The insurance premium is calculated on the basis of the insured amount payed in installments along with other criteria as well like, for example: period of coverage, buyer’s rating, political risk, country
The coverage operates through the payment of the insurance premium
Additional costs
Policy handling commissions
They are provided for when the policy is issued and when the insurability of each individual installment sales transaction is assessed (accepted by Allianz Trade)
Fixed fee for recovery activities
They are established in the Special Policy Conditions
Benefits
Protection
For the whole duration coverage – up to 60 months, the insurer is not allowed to cancel the policy
Profitability
Compensation in case of loss
Business growth
Improved access to financing can trigger business investments and growth
Stability
The insurance policy won’t change even in the case the Client rating gets worst during the period of coverage
Ensured profit
Cash flow is protected under all circumstances: compensation will be provided even if the supply of the good and/or service insured is interrupted no matter the reason
Flexibility
It’s possible to arrange the payment of the policy in installments
Case histories:
real examples of application
Production & Sale of Solar Panels
- Country: Italy
- Type: supply of solar panel
- Policy duration: 30 months
- Supply amount: 3.000.000€
- Quarterly Installments:
€ 300k/each
Production & Sale of industrial machinery
- Country: Spain
- Type: supply of machinery for production plant
- Policy duration: 36 months
- Supply amount: 1.200.000€
- Half year Installments:
€ 200k/each
Supply of MRI machinery
- Country: UK
- Type: supply of a new MRI machinery
- Policy duration: 18 months
- Supply amount: 900.000€
- Half year Installments:
€ 300k/each
Companies typically interested:
Small, medium & large companies
Supply – through credit – of goods and services
Exporting companies
Its a tool that facilitates increasing sales level
Financing & better cash flow
Its a tool that ensures a better access to bank credit. The policy can be transferred to the bank.