Credit Insurance Blog

Credit and Risk Assessment Process of the Trade Credit Insurance Underwriter
by Joe Ketzner

The Credit & Risk Assessment Process

Trade Credit Insurance has been a commercially viable product since the mid-1800’s. However, the use of the word “insurance” provides little insight into the actual working of the services and products provided by these underwriters.

To emphasize this point: a short story about a young man who left the safe confines of a commercial bank in the Spring of 1973 to embark on a career with the largest and oldest trade credit insurer in North America.

Some background; the young man had previously worked as an accounting clerk in the finance department of one of the country’s largest and earliest established railroads performing the usual debit/credit functions that comes from the transport of product between seller and buyer. Once university studies had ended, he left the railroad and joined one of the most esteemed trust companies in the nation at that time. He was again deep into the process of balancing numbers and transactional accounting.


The Value Proposition of Trade Credit Insurance
by Joe Ketzner

manufacturing fail

Beyond Indemnification: The Cadillac Story

Have you ever been involved in an automobile accident? Likely the answer is “yes” and equally as likely the experience was not pleasurable.

What does this have to do with trade credit insurance, you might ask? Wreck the car compared to not getting paid for the goods and services provided to your customer; both are losses you expect your insurance carrier to make right. After all, you paid your premium, you expect to get your claim paid. Pretty simple expectations.

Unfortunately, most people view trade credit insurance in the same light as auto insurance, or property insurance, or any insurance product. A loss is indemnified. I would venture to say that even the dozen trade credit insurance providers operating in the USA spend most of their marketing budget drilling down on the topic of protecting a business from the perils of not getting paid from their customers.


Trade Credit Insurance Timing is Everything
by Joe Ketzner

Trade credit insurance: a matter of timing.


The age of the internet has enabled virtually anyone to investigate the concept of trade credit insurance. Anyone who has responsibility over credit management will likely have invested some time and energy to the subject. Ironically, the basic concept of trade credit insurance has remained unchanged since its genesis in the mid-1800s.

A simple concept: if your customer fails to make payment on goods ordered, shipped and delivered, the trade credit insurance carrier pays the supplier.


Credit and Risk Assessment Process of the Trade Credit Insurance Underwriter
by Joe Ketzner

strategic chess pieces

The Credit & Risk Assessment Process

Trade Credit Insurance has been a commercially viable product since the mid-1800’s. However, the use of the word “insurance” provides little insight into the actual working of the services and products provided by these underwriters.

To emphasize this point: a short story about a young man who left the safe confines of a commercial bank in the Spring of 1973 to embark on a career with the largest and oldest trade credit insurer in North America.


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