Issue 84: Credit Insurance News Digest

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Welcome to issue 84 of Credit Insurance News Digest. This issue is kindly sponsored by Nexus CIFS.

Index

Credit Insurance News

Are there any positive aspects associated with Brexit and the election of Donald Trump for trade credit insurers? Richard Marriage, Managing Director of Nexus CIFS, recently participated in an Insurance Day roundtable,‘Trade credit insurers face the unknown’, in which he suggested that there are good opportunities for UK plc both in the period before actual Brexit and afterwards. Furthermore, as 56% of UK exports are currently destined for outside the EU, there is no reason to expect these exports to fall. In contrast, Mr. Marriage felt that the outlook for UK companies exporting to the US - the largest standalone country that UK businesses export to at around 14% of UK exports - is a "greater unknown". "The wider global repercussions of Trump’s actions we cannot yet forecast." Overall, for policyholders and prospects, the credit insurance market remains relatively soft and "may be at the bottom of the cycle in terms of pricing." To read Nexus CIFS' extract go to http://www.creditindemnity.com/news-and-comment/detail/richard-marriages-insurance-day-interview.

Artifical Intelligence to "reinvent" trade credit insurance. Euler Hermes has announced a partnership between its Digital Agency and Flowcast (a fintech company) which will aim to enable its recently launched product, Single Invoice Cover, to “reinvent” trade credit insurance and risk management offerings - particularly at the transaction and Single Invoice Cover levels. Based on invoice-level data and using machine learning techniques which "significantly outperform traditional models", Euler Hermes advises that Flowcast has developed algorithms that predict a range of risk parameters, such as the probabilities of default or expected timing of invoice payment. To read Euler Hermes' news release go to http://www.eulerhermes.com/mediacenter/news/Pages/press-release-Euler-Hermes-Digital-Agency-Flowcast-partnership.aspx.

Mostly positive: Trade credit insurers reassessed numerous countries in Q1 2017. AU Group has released its latest AU 'G Grade' for Q1 2017 to provide an at-a-glance picture of major trends and the levels of risk for 140 countries. The 'G Grade' is based on the individual assessment of a country by each of the four main credit insurers, Atradius, Coface, Credimundi and Euler Hermes, but condensed and presented as a single score. This report describes how credit insurers reassessed numerous countries in Q1, most of which resulted in positive upgrades (Argentina, Panama, Nicaragua, Jamaica, Bulgaria, Armenia and Iceland). However, other countries have seen their situation deteriorating. Mexico, for example, is being downgraded due to the 'Trump effect' and the high exposure of its exports to USA. In addition, Mozambique faces a huge drop in domestic growth, from 4% in 2016 to around 1% in 2017. To obtain a copy of the 'G Grade' go to http://www.au-group.com/how-to-monitor-country-risks.

Uncertainty surrounding negotiations with the EU will cause UK insolvencies to increase moderately. A new report from Atradius advises that although insolvencies in the UK rose by 15% in 2016, this was due to changes to claimable expense rules which led to the liquidation of nearly 1,800 personal service companies (PSCs) in Q4. Excluding these PSCs, the overall change was an increase of just 1% - more in line with the 2% uptick previously forecast. For 2017, Atradius predicts that uncertainty surrounding the EU will cause UK insolvencies to increase moderately. However, due to the exceptionally high level of 2016's figures, an 8% decrease in failures is likely this year - a statistical adjustment as opposed to an indication of economic strength. Across advanced markets as whole, Atradius expects a 2% decrease. To read Atradius' news release go to https://group.atradius.com/publications/insolvency-forecasts-february-2017.html.

Opportunities for trade credit insurers in the MENA region. LCI's newsletter Due Date includes an article on the budding credit insurance sector in the MENA region and the potential it offers to trade credit insurers. LCI estimates that there are only around 1,000 companies currently insured against the risk of non-payment, indicating that compared to the region’s GDP, the spread of credit insurance remains very under-developed. LCI advises that this is due primarily to a lack of proper awareness on the availability of such tools, and highlights how current demanding market conditions and an increasing numbers of defaulting companies present credit insurers with an opportunity to showcase the importance of having a credible credit insurer to mitigate risks. To read Due Date visit this link.

Atradius cautions that Brexit will have an impact on the UK construction industry. Atradius' latest Market Monitor for the UK construction sector notes that its underwriting stance has been restrictive since early 2015 (when construction business failures started to increase) and warns that, for the time being, its underwriters will continue to underwrite cautiously. Risks will be considered on a case-by-case basis and the most updated management accounts will be required from buyers. The Monitor also reports that while Brexit - especially if it is - "as seems likely" - a hard Brexit - will undoubtedly have an impact on the construction market, the extent of this impact is unclear. "We will monitor things closely with a ‘business as usual’ approach, and adapt our underwriting stance as the situation progresses". To read Atradius' Market Monitor go to https://group.atradius.com/publications/market-monitor-construction-uk-2017.html.

Additional country specific Market Monitors are also available for the Construction industry in the following countries: Belgium, France, Germany, The Netherlands, Italy, US, Australia, Saudi Arabia, Singapore, Sweden, Spain, UAE.

Italian companies' state of health indicates a moderate recovery. A new report from Euler Hermes describes how Italian companies’ state of health in 2016 turned towards a moderate recovery and, as a result, the payment trend improved for all indicators analysed in the domestic market. Days sales outstanding dropped below 90, achieving 86 days in 2016 with a two-day decrease. Across Europe however, only Greece scored worse. Another improving indicator is overdue payables, down by 25%, while non-payments decreased both in frequency (-6%) and severity (-13%) compared to 2015. The value of an average domestic non-payment in Italy is currently €14,000. Business insolvencies also moderated in 2016 for the second consecutive year, down 9%, although they remain more than twice that of 2007 pre-crisis levels. To read Euler Hermes' news release go to http://www.eulerhermes.com/mediacenter/news/Pages/press-release-Italian-business-non-payments.aspx.

Insolvencies are set to increase in Australia in 2017. Mark Hoppe (Managing Director of Atradius ANZ) has published an article in Dynamic Business which warns that the improving trend in the business environment across Australia and other advanced economies is expected to come to a halt this year. Overall GDP growth in Australia for 2017 is expected to be 2.8%, which is slightly down on the 2016 rate of 3%. Export growth will also slow considerably in 2017, down from 7% in 2016 to just 3.6% in 2017. Consequently, businesses that rely heavily on the export market will be particularly affected as trade pressures mount and prices are squeezed. To read Dynamic Business' article go to http://www.dynamicbusiness.com.au/small-business-resources/finance-cash-flow/insolvencies-set-to-increase-in-australia-in-2017.html.

Trade credit insurance provides forward looking ability. An Insurance Day article by Sukia Basi, Chief Executive of the Russell Group, notes that although Brexit, ongoing political unrest in parts of the world and the effects of sanctions on trade are risks the credit insurance market has identified as potential threats to positive trade development, this volatility is a good illustration of why organisations buy credit insurance in the first place. "Yes, it is insurance to cover the exposures that businesses have but that is only a small part of it. A greater part of the reason for buying credit insurance is the forward looking ability that credit insurance provides." To read the article on Insurance Day's website go to https://www.insuranceday.com/news_analysis/special_reports/brexit-and-the-reconfiguration-of-trade-credit-risk.htm (subscription required).

Credit insurers must remain vigilant in face of a complicated situation for French companies. Astreos Credit's latest report on the credit insurance market in France notes that the number of business insolvencies declined by 7% in 2016 - and is expected to follow the same trend in 2017, but warns that the road is still long and credit insurers must remain vigilant in the face of a complicated situation for French companies. "The next President of the French Republic will take over a country with a fragile economy [growth expected to reach at best 1.3% according to the Banque de France]: Election of Trump, Brexit, oil price ... 2017 is going to be chaotic to say the least." Currently, 80% of the French trade credit insurance market is shared by Euler Hermes, Atradius and Coface. To read Astreos' news release go to https://www.astreos-credit.com/blog.

Continuity and change in credit and political risk insurance. TXF has published a Q&A in which its editor, Jonathan Bell, talks with Anthony Palmer, founder of BPL-Global, about his 41 years in the credit and political risk insurance (CPRI) market and what the future holds for the industry. As an example of a potential improvement, Mr. Palmer advises that while the CPRI market's claim record is good, BPL-Global believes that the process could be improved by means of self-certification - an idea originally pioneered by Swiss Re. Essentially, this means that policyholders can self-certify upon default of the obligor and demand claim payment within 10 days. Only after the payment is made to the policyholder, would the insurer do their own due diligence and attempt to recover the claim if they deem it invalid. To read TXF's Q&A go to http://www.txfnews.com/News/Article/5996/Continuity-and-change-in-credit-and-political-risk-insurance.

Debt collection: Nexus CIFS reports success collecting commission from the debtor as well as the outstanding debt & statutory interest. STA International, debt collection partner to Nexus CIFS, has reviewed some of its clients’ cases who have used the Principal Plus option* (i.e., where the policyholder instructs STA to collect their commission from the debtor as well as the outstanding debt & statutory interest) to collect debts in the UK and Ireland. Karl Hague, Commercial Sales Director STA International, advises that in 2016 STA achieved a 71% success rate in collecting commission from the debtor. Two of the biggest success stories include: Company A- £50,366.58 placed - £55,845.81 collected; Company B- £76,260.19 placed - £84,745.21 collected. To read Nexus CIFS' news release go to http://www.creditindemnity.com/news-and-comment/detail/sta-stats-prove-the-point.

*Note: The option came about following the Late Payment of Commercial Debts Act in 2013.

60% of Australian SMEs believe they've experienced a rise in late payments over the previous 12 months. Mark Hoppe, Managing Director of Atradius ANZ, has published an article in mybusiness which reports that latest research by the Australian Small Business and Family Enterprise Ombudsman into Australian SME payment times indicates that many Australian businesses are extending their credit terms to greater than 30 days. As a result, one in four organisations experience late payments of 31 to 60 days and 60% of Australian SMEs believe they've experienced a rise in late payments over the previous 12 months. To read Mr. Hoppe's advice on 5 ways that Australian SMEs can manage their cash flow more effectively (including trade credit insurance) go to http://www.mybusiness.com.au/growth/2775-5-tips-to-beat-cash-flow-woes.

Allianz launches operations in Morocco. Allianz has announced that it has officially entered the Moroccan market with the launch of Allianz Maroc on 30 January. Allianz Maroc will focus on digital channels to communicate with customers in real time and quickly handle claims. It will also develop synergies with other Allianz entities, including Euler Hermes, to better serve business customers interested in expanding or exporting to other African markets. The company is also launching a communication campaign to boost its brand reputation. Allianz hopes to double its Morrocan market share by 2021. To read Allianz' news release go to https://www.allianz.com/en/press/news/business/insurance/20170222_official-launch-of-Allianz-Maroc/.

Hiscox withdraws from political risk. Global Trade Review (GTR) has reported that Hiscox has shut down its political risk operations, and its team of three underwriters have left the company. A spokesperson for Hiscox told GTR that the decision was taken in response to on-going challenges in the market and to seek other opportunities. The firm was profitable in the area, but could not sustainably continue its operations. To read GTR's news release go to http://www.gtreview.com/news/on-the-move/hiscox-withdraws-from-political-risk/.

Congratulations to our readers at the following companies shortlisted for GTR's Leaders in Trade awards. Winners in all categories will be recognised and announced at GTR’s annual awards dinner in London on 23 May. To view the full list go to http://www.gtreview.com/news/global/gtr-leaders-in-trade-shortlist-and-winners-revealed/.

Best trade credit and political risk insurance broker: Nominees: Texel, BPL Global
Best trade credit and political risk insurance underwriter: Nominees: Chaucer, XL Catlin, Channel Syndicate
Best trade credit and political risk insurance broker: Nominees: Texel, BPL Global
Best trade credit and political risk insurance underwriter: Nominees: Chaucer, XL Catlin, Channel Syndicate
Best export credit agency: Winner - Euler Hermes.
Note: Where only one name is listed, this institution is already the outright winner

Congratulations to Nexus CIFS, who just missed out on a record third win at the annual Institute of Credit Management British Credit awards ceremony. For the fifth year in succession, Nexus CIFS, winners in 2013 and 2015, was shortlisted, and on the night received the accolade 'highly commended', in the new Credit Insurance Specialist of the Year category. Sue Morley, Client Services Director, commented: “To feature on the short list five years in a row and to receive special recognition again this year is a fantastic achievement. The criteria for Credit Insurance Specialist of the Year required us to demonstrate a commitment to meeting customer needs, delivery of high quality of service and proof of success in terms of innovative and profitable expansion, with specific examples of how credit professionals have benefitted.”

Announcement from Credit Insurance News Digest

Launching in 2017. We are hugely excited to announce that we will be launching a new business information service and newsletter, Credit Management News and Credit Management News Digest, in mid- 2017.

We're currently developing a list of subscribers for Credit Management News Digest and would be delighted to add your name. Issues will, of course, be free. Click here to sign-up or email us.

New Appointments

Atradius has announced that it has appointed Mike Thomas as Head of Risk Services for UK & Ireland, taking over the role from Marc Henstridge who is now Atradius’ Chief Insurance Operations Officer. Mr. Thomas has nearly two decades of experience within Atradius. His most recent role was as Head of the Risk Services Global Platform, optimising the firm’s risk offering for large multinational companies.

Euler Hermes Digital Agency has announced that it has established a presence in the UK with the appointment of Raphael Caruso as Head of its Innovation Lab for Northern Europe. Mr. Caruso will assist Euler Hermes to develop and test new propositions and identify startups in the trade credit insurance and trade finance space. Prior to joining Euler Hermes, Mr. Caruso was Strategy and Fintech Manager at Direct Line Insurance Group.

Euler Hermes has announced the appointment of Milo Bogaerts as Chief Executive Officer for Euler Hermes UK and Ireland. He succeeds Valerio Perinelli. Mr. Bogaerts was formerly Regional Director for Market Management, Commercial and Distribution (MMCD) in Northern Europe. His successor in the Northern Europe MMCD role will be announced at a later date.

Euler Hermes France has announced three appointments, two of which relate to the creation of a new team to lead the company’s digital transformation and related services development:

Anne-Sophie L’Huillier has been appointed as Director of Communication and Digital Acceleration.
Sophie Marot-Rémy becomes head of Digital Acceleration at Euler Hermes France.
Alice de Brem will join Euler Hermes France Management Board as Sales Director - Brokers.

Business Information

London hit with over £353 million worth of bad debts last year. According to Creditsafe's publication, '2016 A Year in Review', London has been pushed off the top spot for the most insolvencies throughout all regions in the UK. Although for three consecutive years London saw the most insolvencies in the UK (and the number of failures rose once again in 2016 to 4,473 insolvencies), Yorkshire and Humberside has now taken the lead with 5,722 company closures. This is almost double the amount for that region in 2015. To read Creditsafe's news release go to https://blog.creditsafeuk.com/london-companies-issued-353m-bad-debt/.

The 30 richest countries in the world. Global Finance Magazine has published an article detailing the world’s richest and poorest countries for 2016. The article advises that on the basis of GDP alone, the richest five countries in the world are: the US, China, Germany, Japan and the UK. On the same basis, the poorest (and smallest) five are: Tuvalu, Nauru, Kiribati, the Marshall Islands, and Palau. Interestingly, using IMF data for per capita GDP (adjusted for purchasing power parity (PPP)), the 'richest' rankings are led by Qatar, Luxembourg and Macao, while the US and UK are in 13th and 27th place respectively. To read Global Finance Magazine's article go to http://www.gfmag.com/global-data/economic-data/worlds-richest-and-poorest-countries.

New UK payment reporting rules will improve customer/supplier relationships. From next month, all big businesses in the UK will be obliged to post their payment records on a dedicated government website or face the risk of hefty fines for non-compliance. Speaking on BBC Radio 4's 'You and Yours' programme, Philip King, Chief Executive of the Chartered Institute of Credit Management (CICM), says that it is data that all business should have to hand and advised that despite publicity around late payment, there are still not enough complaints (just three of four a month on average) being addressed to the CICM as administrators of the government’s Prompt Payment Code. To read the CICM's news release go to http://www.cicm.com/new-payment-reporting-rules-will-improve-customersupplier-relationships-expert-claims/.

UK businesses bad debt last year totaled over £920 million. New research from Creditsafe has revealed that the number of bad debts in the UK in 2016 rose in comparison with 2015, although the value of bad debts (£920 million) decreased. Greater London had the highest worth of bad debt in 2016 with a total of over £353,000,000 being written off and an average bad debt of £42,194. In contrast, Northern Ireland region had one of the lowest amount of bad debts issued in the UK (114 in total), and Scotland was the second lowest (with 761). For full details by region go to https://blog.creditsafeuk.com/bad-debt-issued-last-year-totaled-920m/.

Brexit and uncertainty surrounding the UK’s future relationship with the EU doesn't appear to be deterring investors. According to new analysis by PwC, the UK is seen as a more important country for growth by investment professionals and has moved-up from fourth place last year to equal third with Germany this year. The US and China are ranked in first and second placed respectively. PwC also found that London is considered the 2nd most important city for growth prospects over the next 12 months, behind New York and followed by Beijing, Shanghai and San Francisco. To read PwC's news release go to http://pwc.blogs.com/press_room/2017/02/investors-see-uk-as-third-most-important-country-for-company-growth-prospects-says-pwc-research.html.

SMEs are vital to the UK economy. The Forum of Private Business' (FPB) review of small businesses in the UK in 2016 reports that over 99.9% of businesses are SMEs (employing 0-249 people), and the combined annual turnover of SMEs in 2016 was £1.8 trillion - 47% of all private sector turnover within the UK. In addition, in 2016 there was a record 5.5 million private sector businesses within the UK - an increase of 97,000 since 2015 and a 2 million uplift since 2000. 96% businesses were micro-businesses employing 0-9 people and accounting for 19% of turnover. To read the FPB's news release go to https://www.fpb.org/blog/review-small-businesses-2016.

Business rates shock to UK small business growth prospects. According to a new survey from the Federation of Small Businesses (FSB), 36% of small firms expect to see their business rates increase from 1 April 2017. Of those facing a rates rise, a substantial proportion (44%) of FSB members say their business rates will eventually rise by more than £1,000 per annum, while 21% will see their annual bill increase by more than 40%. Of the one in three small businesses facing a rise in rates, 54% expect profits to fall and 38% intend to increase their prices. Crucially, 55% plan to reduce, postpone or cancel investment in their business. To read the FSB's news release go to http://www.fsb.org.uk/media-centre/press-releases/business-rates-shock-to-small-business-growth-prospects.

Confidence boost for UK exporters ahead of Article 50 trigger. The British Chambers of Commerce's (BCC) latest 'Quarterly International Trade Outlook' (produced in partnership with DHL) shows that confidence among exporters that their turnover will improve jumped in Q4 2016 ahead of further moves towards Brexit. Businesses in both manufacturing and services are increasingly confident that their company's turnover will continue to improve and that profitability will increase or remain steady in the coming 12 months. To read BCC's news release go to http://www.britishchambers.org.uk/press-office/press-releases/bcc/dhl-confidence-boost-for-exporters-ahead-of-article-50-trigger.html.

UK micro-businesses say late payment enforcer will fail. Pymnts.com has reported that a new report by FreeAgent has found that only 2% of UK freelancers and micro-businesses believe the forthcoming late payment Tsar will have any impact, with 57% of respondents not even aware the position was due to be filled. Initially announced in July 2015 (by then business minister Anna Soubry), the Tsar will aim to help tackle the payment 'imbalance' between small and larger firms. According to the article, the is currently a ‘cashflow crisis’ in the small enterprise space, with just 51% of all invoices paid on time in 2015. To read Pymnts.com's article go to http://www.pymnts.com/news/b2b-payments/2017/uk-late-payments-freeagent-survey-small-business-micro-freelancer-commissioner-regulation/.

Modest pick-up in global growth but risks and vulnerabilities could derail recovery. The OECD has predicted that global economic growth is expected to pick up modestly next year to around 3.6% from a projected 3.3% in 2017. However, risks of rising protectionism, financial vulnerabilities, potential volatility from divergent interest rate paths and disconnects between market valuations and real activity hang over the outlook. In the Euro area, the moderate pace of growth is expected to continue and GDP is expected to expand at an annual rate of 1.6% in both 2017 and 2018. To read the OECD's news release go to http://www.oecd.org/economy/modest-pick-up-in-global-growth-but-risks-and-vulnerabilities-could-derail-recovery.htm.

US SMEs are optimistic about business prospects in 2017 and beyond. According to new research, 'Global SME Pulse' from American Express, SMEs in the US are even more optimistic about the global economy than their foreign counterparts. More than half of US executives (54%, vs. 39% overall) are positive about the global economic outlook over the next 12 months and 42% anticipate revenue growth of at least 8% over the same period. This is exactly double that of SMEs worldwide. In terms of profitability, US SMEs are also upbeat, with 35% forecasting a net profit of at least 8% per annum over the next three years. To read American Express' news release go to http://about.americanexpress.com/news/pr/2017/amex-sme-survey.aspx.

UK vacancy rate remains stable though footfall decline deepens. The latest Springboard Footfall and Vacancies Monitor from the British Retail Consortium (BRC) has reported that footfall in January was down 1.3% on a year ago - the steepest drop in Footfall since the 2.8% fall in June 2016. The Monitor also found that the national town centre vacancy rate was 9.4% in January 2017, down from 9.5% in October 2016. This is the lowest rate since January 2016, when it stood at 8.7%. On a regional level, London saw the strongest improvement, with the proportion of empty shops falling from 9.5 to 8.4% over the three months to January. However, elsewhere the number of empty shops remains worryingly high and the variation between successful and vulnerable locations is widening. To read BRC's news release go to http://brc.org.uk/news/2017/vacancy-rate-remains-stable-though-footfall-decline-deepens.

UK retail sales rebounded slightly in the year to February, but are now expected to deteriorate. According to the latest CBI quarterly Distributive Trades Survey, retail sales volumes grew modestly in the year to February, having fallen in January. However, for the first time in four-and-a-half years, retailers now expect their business situation to deteriorate over the next three months. Ben Jones, CBI Principal Economist, said: “The rebound in retail sales suggests that some of the recent gloom about a slump in consumer demand at the start of 2017 may be overdone. . . However, retailers remain cautious about their prospects, expecting fairly tepid growth in sales volumes next month against a backdrop of rising inflation that is likely to erode households’ purchasing power through the course of the year." To read the CBI's news release go to http://www.cbi.org.uk/news/retail-sales-rebound-slightly-in-the-year-to-february/.

UK insolvencies saw a 24% rise for the first time in 3 years. According to Creditsafe's publication, '2016 A Year in Review’, business failures saw a 24% increase across the UK in 2016 for the first time in 3 years (23,571 closures compared to 19,067 in 2015). The highest increases were in Q4 with 6,954 company closures. As in 2015, businesses aged between three and ten years saw the highest amount of insolvencies, while businesses who had been trading for over twenty-five years remained the age category of businesses with the least insolvencies and would appear the most stable. To read Creditsafe's news release go to https://blog.creditsafeuk.com/insolvencies-saw-a-24-rise-for-the-first-time-in-3-years/.

UK SMEs trading internationally are increasingly concerned about economic climate and political uncertainty. BDRC Continental's latest quarterly SME Finance Monitor (based on more than 100,000 interviews with SMEs) has found that while smaller UK SMEs report ‘business as usual’, larger SMEs and those who trade internationally have greater concerns about the future. Between 2015 and Q4 2016 the increase in levels of concern amongst the largest SMEs with 50-249 employees rose from 8% to 13% for the economic climate and 7% to 15% for political uncertainty. More marked increases were seen amongst SMEs that trade internationally, notably those who both import and export where concerns about the economic climate rose from 17% in 2015 to 35% in Q4 2016, and concerns about political uncertainty from 8% to 32% over the same period. To read the Monitor go to http://bdrc-continental.com/products/sme-finance-monitor/.

8 in 10 UK SMEs unphased by the uncertainty of Brexit. Despite the Bank of England’s projection that the UK economy would take a cumulative hit by 2019 of 1.5% of GDP due to Brexit - which equates to around £30 billion - research from Hitachi Capital Business Finance suggests that SME confidence has remained consistently bullish over the last 15 months. The only exception was a short-term fall in confidence in the weeks immediately after the EU Referendum vote. According to Hitachi Capital Business Finance, 8 in 10 SMEs are predicting business as usual in the next three months, while 40% of SMEs anticipate growth. Overall, SMEs in Wales were those most likely to express concern for their business, with 10% fearing contraction and 8% predicting a struggle to survive. Click here to read Hitachi Capital Business Finance's news release.

UK start-ups declined in 2016 compared to the previous year. According to Creditsafe's publication, '2016 A Year in Review’, only 605,570 UK companies started-up in 2016 compared to 610,589 in 2015, and Q2 was the only quarter to see more newly incorporated business than the previous year. London, for example, saw a drop compared to the previous year with 3,000 fewer businesses being newly incorporated. The South East also saw a significant drop of nearly 7,000 fewer businesses opening their doors in 2016 compared to 2015. The biggest rise in start-ups was seen in the South West region, where 4,195 more companies were registered. To read Creditsafe's news release go to https://blog.creditsafeuk.com/2016-start-ups-declined/.

Despite Brexit, 44% say that the UK is the best place to start a business. Idinvest's inaugural 'Entreneurship Barometer' has found that despite concerns that Brexit might diminish the UK's position as one of Europe's leading business hubs, 44% of the UK population still consider it the best country to start a business, beating rivals Germany by a strong margin. Participants were 10% more concerned about the European Economic outlook than the UK Economic outlook. The Barometer also found that over half the UK population are keen to start their own business, with 16% having definite plans to do so over the next year. This means that currently almost 2 out of 10 people living in the UK will be entrepreneurs by 2018. To read Idinvest's news release go to http://www.idinvest.com/file_bdd/content/1487754933_BarometerUK.pdf.

UK Budget 2017: Loss Relief reforms & Business Rates could increase business failures. R3 has warned that although changes to corporation tax loss relief included in the Budget are expected to raise £1.6 billion over the next five years, this will come at the cost of an increase in business failures. After 1 April, businesses may only be allowed to write off 50% of past losses from future corporation tax bills, rather than the current 100%. Andrew Tate, president of R3, says: “In some cases, business rescues will be hindered by hefty tax bills that would not arise under the existing tax regime. More business failure and less business rescue will be the consequence.” To read R3's news release go to https://www.r3.org.uk/index.cfm?page=1114&element=29299&refpage=1008.

UK Manufacturing closures decreased in 2016. New research from Creditsafe has shown that although company closures rose 24% as a whole across the UK, the manufacturing sector saw a reduction from 1,793 company closures in 2015 to 1,676 in 2016. The sector’s insolvency count has now consistently declined over last previous 4 years, indicating a recovery from the bad reputation that lingered around it during the recession. In contrast, the sector with the most insolvencies was admin and support services, with 5,392 company closures last year. To read Creditsafe's news release go to https://blog.creditsafeuk.com/manufacturing-closures-dropped-in-2016/.

Career Opportunities

FEATURED VACANCY - Credit Risk Underwriter, City of London (Ref.220)

This well established insurance company is seeking an excellent 'all rounder' for their Credit Risk Analyst/Underwriter role based in the City. Although you will be involved with company credit risk analysis on a daily basis, the role also encompasses other responsibilities such as claims assessment, new business development, development of underwriting and claims criteria, records and database maintenance, involvement with the Budget, preparing policy wordings and contracts, maintaining records and databases, producing and analysing management information. You may very well come from a credit risk insurance, bond or surety underwriting background for this position. It is important that you have the following skills, qualifications and experience:

Excellent time management and organisational skills
Strong communicator
A competent user of Microsoft Excel Comfortable and experienced in company credit risk analysis
As this is a diverse role, you must be flexible and a self starter
Pay attention to the detail and have a positive attitude to getting things done
Understand the importance of procedures to complete administrative tasks

Nova Search and Selection is acting as an employment agency for this vacancy. Please contact Kristina@novasearch.co.uk or call 07931-371990 for further information.

(Please mention that you saw this vacancy on Credit Insurance News' Job Board)

Underwriter UK Export Finance. London. £30,189 - 36,491.

The role is to be part of a growing team that takes prime responsibility for the analysis of applications received from Banks, Exporters and Credit Insurance Brokers where UKEF guarantees, working capital facilities and trade credit cover are required. These applications will cover a range of trade finance and credit insurance requirements. The role also plays an important part in liaising with applicants, Banks, Brokers and Export Finance Managers and, from time to time, meeting with clients. The role will also assist with the structuring and negotiation of facilities and drafting and presenting analyses and recommendations for approval with sanctioning managers and the UKEF Credit Committee.

The main responsibilities of the post include:

Review enquiries and applications received from exporters, brokers and banks for trade finance and/or trade credit insurance products.
Prepare internal case documents including credit submissions underwriting cases by completing a comprehensive risk assessment of each application received as per existing procedures (including the credit risk assessment, legal compliance and anti-bribery and corruption due diligence) and according to UKEF credit policies, liaising with exporters, brokers, banks, UKEF senior management, and UKEF’s Export Finance Managers as appropriate.
Manage and prioritize efficiently the outstanding cases, providing regular updates to the appropriate UW manager and EFM to ensure that cases are handled within agreed turnaround times.
Representing UKEF in meetings with internal and external stakeholders and customers, including presenting cases to UKEF’s Credit Committee.
To work with exporters to explore potential solutions to meet their needs and to enhance their export capacity and capability.
Maintain related internal case documents including, EXIP case clearance schedules, client watch lists and other related documents.
Contribute to the negotiation of key documentation with stake-holders.
Have responsibility for taking cases through the risk approval and underwriting processes working with other teams in the Department and external advisers, seeking advice from colleagues and external advisers as required.

Further information about the role is available in the attached candidate information pack.

We'll assess you against these competencies during the selection process:

Making effective decisions
Collaborating and partnering Achieving commercial outcomes
Delivering value for money
Managing a quality service Delivering at pace

Click here for more information and to apply for this vacancy. Please note the closing date for application is Sunday 26 March.

(Please mention that you saw this vacancy on Credit Insurance News' Job Board)

Credit Insurance Consultant – South East (ref Ref 29895). £35,000 - £100,000.

My client is the Market Leader in the provision of Credit Insurance, and through continued success, they now have a fantastic opportunity for a New Business focused professional to join their team. The successful candidate will have a proven track record in new business or account growth and will be required to build internal relationships, gaining referrals and then develop these into prospective sales opportunities. For your hard work you will be rewarded with the opportunity to earn very pleasing commission cheques, and work for a business that is very employee focussed.

Responsibilities: Building strong relationships with the company partners to facilitate referral introductions; Generating a high quality and sustainable sales pipeline; Converting the pipeline into new business customer relationships; Providing accurate management information on a continual basis.
Skills: A proven track record in business to business field sales / account management with growth targets; An exceptional level of business acumen and commercial awareness; Strong relationship building experience; Corporate in both manner and appearance; The ability to read and perform basic analysis of a set of accounts; Experienced in consultative selling; The ability to present technical information effectively; Experience using Microsoft applications and SFDC CRM.
To apply for this vacancy, please send your CV to dave.dewey@heatrecruitment.co.uk.

Please mention that you saw this vacancy on Credit Insurance News' Job Board).

Commercial Account Handler. London. Salary £50,000 - £70,000.

One of the world’s leading trade credit insurance experts is looking to add to its growing team. This role would suit someone who has come from a Risk Underwriter background or Risk Analyst and looking to move into an account manager position. You should have a wealth of experience in Trade Credit and if possible in large multinational accounts. Your added experience of risk analysing is going to add value to the current team and a extra level of knowledge for the clients. You will have the backing of a strong and renowned brand as well as a great place to grow your career. For more details or to apply please email mark.keizner@reedglobal.com. (Please mention that you saw this vacancy on Credit Insurance News' Job Board).

Account Manager, £30,000 - £35,000. Manchester, London, Birmingham or Bristol.

Do you excel in managing client relationships and have a background in Trade Credit? Based in either Manchester, London, Birmingham or Bristol this is going to suit someone who wants to work for one of the global leaders in Trade Credit as an Account Manager. Your main focus will be to ensure retention of your client base, ensure you are utilise the company’s products as best you can to ensure maximum income. You will also be responsible for working with broker teams and ensuring group compliance is adhered to. You should be driven and someone who takes pride in delivering excellent customer service and a strong Account Manager focus. For more information or to apply please contact mark.keizner@reedglobal.com.

(Please mention that you saw this vacancy on Credit Insurance News' Job Board).

Business Development Manager, £35,000 - £40,000

Target driven Business Development Manager needed for global insurance company. Location is open dependent upon the right person and can include Manchester, London, Leeds or Bristol. Your background will be with in Trade Credit and a focus on the mid-market client base. Someone who understand managing client needs and a hunting for your next opportunity. The focus on a day to day basis will be:

To deliver sales growth targets to meet individual and team target.
To price and structure business taking joint ownership of the loss ratio in the Region with the Risk department and delivering a profitable result to the business.
To develop strong client relationships and create a sense of mutual trust and beneficial reliance with new clients.
To develop the relationship with Brokers.
To maximise the opportunities for all product lines, thereby maximising contribution.
To maximise conversion of profitable opportunities with strong probability of long term retention of client.

For more details or to apply please email mark.keizner@reedglobal.com.

(Please mention that you saw this vacancy on Credit Insurance News' Job Board)

Account Executive: Salary £30,000-£40,000.

Do you have experience in Trade Credit and a background of developing new business and client relationships? If you are looking for that next move and want to work for one of the UK’s biggest network or Trade Credit brokers, then this role might be right for you. The opportunity can be based in Manchester, London or Essex and will need a proactive person who understands how to rely on the network to generate the right level of business and maintain the relationships year on year. Career paths are well laid out for the right person as is development of your skill sets. For more information or to apply please contact mark.keizner@reedglobal.com.

(Please mention that you saw this vacancy on Credit Insurance News' Job Board).

Forthcoming Events

Receivables Finance International Convention, 15 - 16 March. London.
Over 150 receivables finance industry experts, government agencies, financiers, ‘Fintechs’ and alternative platforms, banks, insurers and corporates gathered in Lisbon at the 2016 Receivables Finance International Convention (‘RFIx’). In 2017 RFIX will be celebrating its 17th year in London and will continue to introduce attendees to new entrants to the market, update them on the latest regulation and compliance issues, evaluate new financing structures and much more. “RFIX is an excellent forum for sharing developments in receivables finance. I was especially pleased with how much the debates focused on the future of the industry.” Duncan Stevenson, Head of Legal, Fraud & Business Intelligence, RBS “Great initiative towards addressing industry issues through sharing of best practise.” Arup Roy, Head of Global Transaction Banking, Saudi Arabia British Bank BCR are delighted to offer Credit Insurance News members a 10% discount on booking in addition to the early bird booking discount which expires on 30th December 2016. Use code CIN17 and register now at www.bcrconferences.com.

Turkey Trade & Export Finance Conference 2017, 21 March. Istanbul.
For Turkish companies involved in international trade and investment, GTR‘s annual event in Istanbul has quickly become the primary industry gathering at which to meet and discuss their exporting and financing requirements with like-minded organisations, as well as with those institutions tasked with financing them. On March 21, over 350 delegates are expected to meet at the Swissotel the Bosphorus in this important city for global trade, a vital bridge between Europe, Mena and Asia. As the only event of its kind, and with established support from key industry associations, public bodies and institutions, 2017’s event features new and innovative content designed to foster maximum engagement between speakers and delegates. The event brochure will be released later in early 2017. Click here for more information.

Russian Investment Summit 2017. Thursday 23 March 2017. The Tower - Guoman, St Katharine's Way/ London.

This one day, multi-streamed Russian Investment Summit will look at the current and future outlook for investments into the Russian market, risk mitigation strategies dictated by the present geopolitical environment, currency and oil price fluctuations, the level of investor protection as well as asset allocation strategies. Along with that, the format of the event will allow attendees to join a specific break out discussion in relation to investment classes either in stock market, fixed income, and private equity.

Topics of discussion:

Evaluation of current investment deals: Asset classes, sectors and regions.
Russia as a part of emerging markets exposure: Why and how to invest?
The development of corporate governance and investors' protection.
Risk mitigation strategies and fundamental review of the currency market.
Stars of the stock market: Is it time to make selective investment?
The rise of fixed income investments in Russia.
Key transaction trends and the performance in private equity and venture capital.

For more information go to http://newspartaevents.net/event/russia2017/.

Central South Eastern Europe (CSEE) Investment Summit. Thursday 30 March 2017. 11 Cavendish Square. London.

The one-day summit will explore how to maximise returns on investment, in light of recent government initiatives across the region and how to overcome current geopolitical challenges, market scepticism, and stagnation. Moreover, understand how to make the most profitable returns on investments based on asset classes and benchmarking.

The event will showcase recent investment success stories from the regions’ growing Telecommunication, Technology and Real Estate sectors.

Topics of Discussion:

Tapping into underestimated growth potential regionally – countries like Croatia, Czech Republic and Serbia are increasingly looking more attractive to investors.
Recent ratings upgrades – with Romania projected to move into emerging market status, what does this mean for investment in the region?
Growing Asian investment into the region – ICBC (Industrial Commercial Bank of China) have recently set up a €10 billion CEE fund.
Geopolitical analysis – the impact of Brexit, American and European elections effect investment into CSEE going into 2017?
Regional investment highlights and challenges such as SAB Miller and Allegro deal.

For more information go to http://newspartaevents.net/event/csee/.

Iran Trade Business Briefing 2017, 26 April. London.
With 2017 looking set to be another hugely significant year for Iran, GTR gathers in London to hold its inaugural 2017 Iran Trade Finance Business Briefing.
Following the events of 2016, which saw the January implementation of the Joint Comprehensive Plan of Action (JCPOA) nuclear deal, countless signing agreements and huge excitement concerning the potential provided by a new global market economy, interest levels in Iran have continued, alongside political wrangling and ongoing expert discussions regarding issues such as sanctions and compliance.
With a new US administration potentially signalling further change to the terms of the JCPOA and with Iranian elections scheduled for May, this event provides the perfect opportunity for business professionals to come together to consider the country’s future trade prospects, sharing experiences and gaining crucial insight into the opportunities provided by this exciting market. Topics for discussion will include: The view from government - The future of Iranian trade; Experiences of doing business in Iran - What you need to know; Understanding the regulatory landscape (including the impact of sanctions); Bridging the gap - How can you build financing capacity in Iran; Which industry sectors hold the key to fostering Iran’s future trade growth? Click here for more information.

Next steps for the UK insurance sector - innovation, regulation and key issues post-Brexit Thursday, 4 May 2017. Central London.
The seminar will provide policymakers and key industry stakeholders with an opportunity to discuss the future for the UK insurance sector.
Delegates will consider the impact of the EU referendum result on the sector, including its implications for the future of passporting, skills, investment and market stability, as well as options for the future of Solvency II and its impact on both stability and competition. Further sessions will focus on latest trends and challenges facing insurers - including the future use of big data and ongoing initiatives to tackle insurance fraud - and will also bring out discussion on how Government policy in areas such as Flood Re and personal injury reform will impact on the future of the sector.
It is also timed to discuss the findings of the Treasury Select Committee inquiry into EU insurance regulation, as well as other ongoing policy developments such as the Prudential Regulation Authority (PRA) consultations on cyber insurance underwriting risk and the sector’s ability to deal with market turning events.

Speakers and other delegates at this conference are expected to be a senior and informed group numbering 120, including Members of both Houses of Parliament, senior officials from HMT, PRA, FCA and other relevant departments as well as representatives from life and general insurance sectors, brokers, business groups, lawyers, consumer bodies, consultants, academics, as well as members of the national and trade press. Click here for more information.

TXF Venice 2017: The Global Borrower’s Summit , 7-9 June. Hilton Molino Stucky Hotel, Venice Italy.

Government ministers, DFI leaders, CEOS and captains of industry will gather in Venice for TXF’s annual flagship European conference covering project, infrastructure, export & agency finance. Situated in the heartland of European exporters, Venice is a dynamic and historic financial hub.
Using the latest data and analysis, experts will discuss the trends of 2017 and how industry players can maintain their relevance in the market. Topics include the role of technology in project financing, ways in which DFIs have increased private debt market liquidity and political risk forecast. The agenda contains innovative workshops, idea-labs and debates, dedicated sessions on Italian export finance, and sector & regional breakdowns.

Last year’s instalment in Rome welcomed over 700 guests from 130 international companies. For 2017, the event is expanding to include an additional day and an expected guest list of 1000 industry professionals. The conference will also host a Gala Dinner, which brings leaders together for an evening of entertainment. Guests can join a host of other intimate networking opportunities.

To find out more information or register, please click here. Please note readers of Credit Insurance News will receive 10% of the ticket price with code CIN17sub.

About this Issue's Sponsor: Nexus CIFS

Nexus CIFS Ltd is the longest established credit insurance managing general agent (MGA) in the market. We are proud to be backed by several leading Lloyd’s syndicates and also Liberty Mutual and thereby offer policies with a very strong “A” (AM Best) rating.

Our growing team of underwriters offer expertise in domestic and export whole turnover credit insurance, and single situation cover, recently extended to include contract frustration and political risk as well as credit transactions. We are also now offering Surety Bonds through our sister company, EBA.

In addition to the above, we provide a suite of products to enhance companies’ credit management and to enable sales including “First Select”, providing tailor made marketing leads, “First Collect” our highly regarded debt collection service and “First Limit” offering real-time credit opinions with monitoring 24/7.

We are proud to have been finalists five year’s running at the Institute of Credit Management Awards, most recently being “Highly Commended” in the Credit Insurance Specialist category, thanks to our flexible underwriting and focus on customer service.

Nexus CIFS is part of the Nexus Group, a speciality MGA on a dynamic growth path, concentrating on niche classes of business and delivering excellent service and cutting edge products. The Nexus Group has 20 underwriting partners and underwrites PI, D&O, financial lines and accident & health as well as trade credit.

www.creditindemnity.com.

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