October 2020: Q&A

Q&A with Julian Hudson,
Global Head of Trade Credit at Chubb & Short-Term Committee Chairman at Berne Union

When did Chubb Global Markets start writing trade credit business?

Chubb Global Markets has been underwriting Political Risk & Credit business for over 20 years. We operate on a global basis with our 10 offices in 7 countries all reporting into London.

Are your trade credit products limited to Excess of Loss?
Excess of Loss is the product for which Chubb is best known but there is much more to our credit product range. On the short-term side we underwrite single buyer, named buyer and our top-up product Credit Complete. We also offer medium-long term credit products for a range of trade and non-trade transactions.

Is this a UK and European product or are there global capabilities? And what is your approach to managing these policies?
Excess of Loss is more widely used in the UK and European markets but it is far from limited to these markets. The product is not necessarily suitable for all companies though and tends to be used more by the larger company with established credit management procedures. There must also be a desire to retain risk on the part of the company. Excess of Loss does not replace a company’s credit management procedures but is instead complimentary.

Has your approach to underwriting changed in the last 6 months?
Our approach to underwriting has not changed and has remained consistent. The last 6-months have proven why this approach is so important and valued by brokers and clients alike. The risk environment has changed significantly over the past few months, but our focus has been on working with our clients during this period so as to ensure they are in the best possible position to return to business as normal. Our brokers and clients have not had to manage any reductions or cancellations in credit/ country limits and have instead focused on managing their business. Further, the single underwriting contact within Chubb that all brokers and clients benefit from has facilitated communication and decision making during a time when speed has been of the essence.

How has your Country & Credit Risk Management team helped to support you during COVID?
Our Country & Credit Risk Management team is a core component of our strategy. The team has representation across our offices and provides our underwriters with the information needed to assess sector and client specific country and credit risks. Their services also extend to providing client/ sector specific reports and presentations as required.

Where are you seeing demand for your products?
We are seeing increased demand from existing trade credit clients re-evaluating the support and solutions they require from their insurance, be it immediately or as they plan for 2021. Demand is across our product range and from clients needing to cover a single buyer because it represents a particularly large exposure on their balance sheet through to clients looking for the certainty that non-cancellable limits offers across their entire portfolio.