Welcome to issue 85 of Credit Insurance News Digest. This issue is kindly sponsored by Arthur J. Gallagher.
Index
Credit Insurance News
Will Brexit produce the bonanza that trade credit insurers are hoping for? InsurancePOST has published an article, 'Credit insurers look to capitalise on Brexit fallout', which reports that although Brexit and predicted rises in UK business failure has sent the PR machines of the major credit insurers "into overdrive", some industry professionals feel that this is no guarantee that insurers are going to "clean up". "The market is already quite mature in some countries like the UK, France, Germany and Belgium, and trade credit insurance is  virtually a prerequisite in industries like steel, construction and electronics. So the extent to which it can grown year on year is limited." The article also stresses that credit insurance industry experts counter the suggestion that difficult economic conditions post-Brexit could result in claims increases - and consequently higher prices for credit insurance products - by stressing that new technologies and the insurers' ability to manage risk in real time will help combat any negative economic impact. To read InsurancePost's article go to http://www.postonline.co.uk/post/analysis/2482066/credit-insurers-look-to-capitalise-on-brexit-fallout.
Trade credit insurance claims for 2015 and 2016 now higher than any time since the global financial crisis. Members of the Berne Union and the International Credit Insurance and Surety Association (ICISA) have reported that claims for 2015 and 2016 were higher than any time since the global financial crisis. Furthermore, trade credit insurers anticipate that these highs will continue through 2017, especially in Latin America and to a lesser extent in MENA.  Since the start of the global financial crisis in 2008, credit insurers have paid claims of around €56 billion. However despite the current peak in claims, the Berne Union and ICISA also find that risk appetite amongst trade credit insurers remains high and, "the core markets for trade credit insurance – Europe especially – are stable and very soft with respect to pricing." To read CFO Innovation's article go to http://www.cfoinnovation.com/story/12794/number-business-insolvencies-peak-2016.
How trade credit cover can provide assurance for businesses navigating demanding times. This issue's sponsor, Arthur J. Gallagher (AJG), has published a paper, 'The year of uncertainty: Trade Credit’s outlook for 2017', which warns that although the key topic for 2017 is economic and political uncertainty, this year is also about resilience. AJG's Trade Credit team highlight some of the key areas of uncertainty that UK businesses face in 2017, including low growth (1.5% in 2017), insolvency rates (anticipated to increase by 5% in 2017), increasing costs and political unease, and describe the role that trade credit insurance can play in supporting and reinforcing businesses against undue risk in the current economic environment and protection from the domino effect that can be created by the insolvency of a supplier or customer. The Paper concludes: "You can't control the economy and you can't negate uncertainty but you can protect yourself against undue risk." Although, "many of the hurdles you will face in 2017 will be outside the control of your business", trade credit insurance means that you "are not powerless."  To download AJG's paper go to http://www.ajginternational.com/news-insights/articles/news/2017/trade-credit/.
Brexit boosts demand for trade credit insurance. An article in Intelligent Insurer reports that the British Insurance Brokers' Association (BIBA) has noted that economic uncertainty triggered by the UK’s exit from the EU is promoting an increasing number of UK companies to review their company's requirement for credit insurance. Mike Clark, chair of BIBA’s Trade Credit Focus Group, commented that following the UK's Brexit referendum the most immediate challenge for UK corporates has almost certainly resulted from risks associated with a weakened currency. "For companies which failed to take adequate measures, a 10% fall against the euro and 20% drop against the dollar has eroded short-term cash-flow and longer-term profit." As a result, the 2017 BIBA Manifesto calls on the UK government to work with BIBA and trade credit insurance sector in assisting UK businesses to navigate through the issues, changes and uncertainties associated with Brexit. To read Intelligent Insurer's article go to http://www.intelligentinsurer.com/news/brexit-boosts-demand-for-credit-insurance-11498. This news story was published on Intelligent Insurer on 29 March. To read more news on Intelligent Insurer, please click here. 
Brexit's economic impact: Three scenarios. In its latest report, 'The Taming of the Brexit', Euler Hermes warns that from 2017-2019, the UK  will have to negotiate not just its exit from the EU but also a bilateral trade agreement. Of three possible Brexit scenarios, the worst outcome (20% probability) would be if the UK and the EU cease negotiations in 2019 and no free trade agreement is signed. Ana Boata, economist for Europe at Euler Hermes, explains: “Without a bilateral free trade agreement, the UK would have to trade with the EU under the World Trade Organization’s ‘most-favoured nation’ status. British goods would be subject to the full European common external tariffs, customs controls and very restrictive non-tariff barriers – creating supply chain chaos. Exports losses on UK goods would reach £30 billion." As a result, a UK recession would take hold from 2019 - with GDP declining by 1.2%. In the best case scenario of a limited trade agreement signed in 2021 (55% probability), although Sterling could depreciate between 5-7% - resulting in higher import costs, reduced profitability for British companies and increased corporate insolvencies (+5% in 2017, +6% in 2018 and +9% in 2019) - the UK economy should avoid recession. To read Euler Hermes' news release with a link to the full report go to http://www.eulerhermes.com/mediacenter/news/Pages/press-release-Brexit-economic-impact-UK-European-economies.aspx.
Corporate payments improve in China in 2016, but ultra-long overdues are up. Coface's latest survey on the corporate credit risk management of Chinese companies reveals that corporate payments improved in 2016, with only 68% of the respondent companies experiencing overdue payments (compared to the previous 5-year average of 80%) and fewer respondents reporting an increase in overdue amounts. Nevertheless, the situation surrounding ultra-long overdues gives cause for alarm, with 36% of the companies surveyed reporting ultra-long overdue amounts (over 180 days) which exceeded 2% of their annual turnover. There was also a rise in the number of companies that reported average overdue times of 90 days or more in 2016 (26% vs. 21% in 2015), and a particularly sharp increase in respondents (16% vs. 10% in 2015) with average overdue times of above 150 days. To read Coface's news release with a link to the full report go to http://www.coface.com/News-Publications/News/Corporate-payments-improve-in-China-in-2016-but-ultra-long-overdues-are-up-under-financial-stress.
The Asia-Pacific region offers a wealth of opportunities for UK businesses. Following the publication of its recent report analysing the risks of trading in the Asia-Pacific region (see Digest: 14 February 2017), Atradius has issued a news release to stress to UK exporters the real trading opportunities offered by both the major, established markets such as China, as well as emerging economies including Indonesia and Vietnam. Of the latter, Richard Reynolds  (Head of Regional Sales for Atradius), commented: "These economies are becoming increasingly independent and sophisticated; mini-powerhouses in their own right.” However, although the opportunities for UK exporters are significant, Mr. Reynolds also warned that local knowledge and the right support is crucial – both in terms of knowing your market and the individual customer. "Poor appreciation of local customs, taxation, investment regulations and the restrictions on foreign investment or participation within certain sectors can create costly mistakes." Click here to read Atradius' news release.
Recovery in global growth: more than a flash in the pan? Coface's latest Panorama, 'Country and sector risk Barometer Q1 2017', reports that signs of a recovery in global growth are multiplying and Coface now predicts that global growth and global trade will increase by 2.8% and 2.4% respectively in 2017. However, although the rise in business confidence is perceptible, Coface warns that it is not yet generating a positive widespread upturn in country and risk assessments. "The activities of businesses will remain constrained by high and increasing debt in the emerging economies, along with the threat of protectionist, political and social risks in the advanced and emerging countries." In all, the only assessments revised upwards are those of the Czech Republic (to A2), Latvia (to A3), Israel (to A2) and Armenia (to D). To read Coface's news release with a link to the full report go to http://www.coface.com/News-Publications/News/Country-and-sector-risks-worldwide-Business-confidence-is-picking-up-again-despite-persistent-political-risk.
The rise and rise of political risks. Coface's latest Panorama report, 'The rise and rise of political risk', notes that its political risk index (based on 159 countries) has been increasing since 2013, but that this increase conceals different dynamics depending upon the region. The Middle East, for example, remains an area in which risk is noticeably highest, while risk has significantly increased in Sub-Saharan Africa and in the CIS. In contrast, the situation in some major economies has improved since the 2009 crisis, although in others the rise of populism and security concerns in countries hit by terrorism deteriorate the scores. According to Coface's research, the countries in which the pressure of populism has reached the highest level are the UK (score of 73%), France (70%), Austria (64%) and the Netherlands (63%). To read Coface's news release with a link to the full Panorama go to http://www.coface.com/News-Publications/News/New-Coface-Political-Risk-Index-in-159-countries.
To view Coface's Infographic showing political risks go to http://www.coface.com/News-Publications/News/Infographics-New-political-risk-index-for-159-countries.
The French economy still bears the scars of "a lost decade". According to Euler Hermes, the French economy continues to bear the scars of what "could be described as a lost decade,” according to Ludovic Subran, Euler Hermes chief economist. As a result, economic recovery is only just beginning: in 2015 growth exceeded 1% (reaching 1.2%) for the first time in 4 years, and should accelerate to +1.4% in 2017, after 1.1% in 2016, while corporate insolvencies are expected to decrease by 7% in 2017 - although they will remain above 2007 pre-crisis levels. However, despite these improvements, Euler Hermes  cautions that French companies remain susceptible to economic shocks and corporate balance sheets are too weak to drive a decisive rebound in investment. In addition, the corporate sector is losing production capacity and struggles with tax levels equivalent to 60% of gross profits (vs. the 40% OECD average). To read Euler Hermes' news release with a link to the full report go to http://www.eulerhermes.com/mediacenter/news/Pages/press-release-Euler-Hermes-report-Reflation-rebalance-retrenchment-French-election.aspx.
'Made in Britain’ is an attractive brand in overseas markets. BQ has published an article, 'Post-Brexit business in the North', in which Mike Rowan, North Regional Manager of Atradius, describes some of the negative aspects of Brexit - including a possible rise in business insolvencies, but stresses that concerns about Brexit have begun to widen the horizons for local exporters. Mr Rowan advises: "'Made in Britain’ is an attractive brand in many overseas markets and the devaluation of the pound currently enables Northern exporters to compete financially with other suppliers. North firms are well placed to realise growth by going global, capitalising on their products and services being perceived as more affordable." As a result: "forward-thinking companies could see orders increase from existing business, as well as new opportunities from new customers in new territories." To read BQ's article go to http://www.bqlive.co.uk/north-east-cumbria/2017/03/17/news/post-brexit-business-in-the-north-25314/.
How US companies can grow their business through the strategic use of trade credit insurance. Smart Business has published an article, 'Trade credit insurance mitigates risk, offers opportunities to grow business', in which Jim Altman, middle market Pennsylvania Regional Executive at Huntington Bank, provides an overview of the advantages of trade credit insurance for US companies. Mr. Altman suggests that while any company that sells good or services could use this insurance, companies with more than US$5 million in sales and some industries — mining, energy, metals and automotive, for example - are ideal candidates. He also warns that as "credit insurance is a very niche business in the US, with just a few insurance companies that have expertise with this product," it is vital for businesses to work with an experienced broker. To read Smart Business' article go to http://www.sbnonline.com/article/trade-credit-insurance-mitigates-risk-opportunities-grow-business/.
South African businesses turn to trade credit insurance in a tough economy. Maria Teixeira, Trade Credit, Surety and Political Risks Business Unit Manager at Aon South Africa, has published an article in BizNews.com which reports that with South Africa’s current economic and trade environment remaining constrained and unpredictable, businesses are increasingly recognising the benefits of trade credit insurance. "It’s very evident that businesses are struggling and cash flow is becoming increasingly constrained, evidenced in the fact that payment terms in many instances are being stretched beyond 90-120 days" she commented. As a result, "credit insurance for business has become an absolute necessity."  To read BizNews' article go to http://www.biznews.com/leadership/2017/03/15/business-trade-credit-debtors/.
2017 will be a more challenging year for the UK Consumer Durables sector. Atradius latest Market Monitor on the Consumer Durables sector in the UK warns that 2017 is expected to be a more challenging year for consumer durables retail, as the weaker British pound is putting upward pressure on prices, and uncertainty surrounding the UK’s future relationship with the EU is weighing on investment spending. As a result, although a significant increase in payment delays from the current 60-day average is not expected, a slight increase in insolvencies is predicted. Atradius advises that it currently maintains a neutral approach to underwriting in the sector, and, going forward, intends to make as much contact with buyers as possible - "in particular with those who heavily rely on sourcing materials from overseas, those who have large store portfolios, high levels of debt to service and those whose financials are showing signs of deterioration." To read this Market Monitor go to https://group.atradius.com/publications/market-monitor-consumer-durables-united-kingdom-2017.html.
Consumer Durables Market Monitor reports are also available for the following countries: China, France, The Netherlands, The US, Germany, Poland, Hungary, India, Indonesia, Italy, Spain and Sweden at https://group.atradius.com/publications/.
Swiss Export Risk Monitor 2017. The Bern University of Applied Sciences and Euler Hermes recent survey about the export risks of Swiss exporters in 2017 has found that after an excellent year in 2016 (up 3.8%), Swiss companies expect exports to rise further in many countries in 2017. The confidence extends to the post-election US, where over two-thirds of Swiss companies anticipated positive economic performance and high export levels. Other countries expected to see increased exports to include China, Japan and Russia. In contrast, Swiss companies were much less positive than last year in their expectations of exports to the UK and Turkey. To read Euler Hermes' news release go to http://www.eulerhermes.com/mediacenter/news/Pages/press-release-Swiss-Export-Risk-Monitor-2017.aspx.
Markel launches a surety product and launches a trade credit team in Canada. Markel International has launched a surety offering, with a new team headed by Damian Manning with David Chandler as senior underwriter (see 'Appointments' below). The business will initially focus on opportunities in the UK, Ireland and Continental Europe with the intention to expand to other regions outside North America.
In addition, Markel International has announced its plan to develop its trade credit and political risk business in Canada. Business will be underwritten by Markel Canada on Lloyd’s syndicate 3000 paper. Markel advises that the move reflects the successful development of Markel’s trade credit and political risk business expansion in New York, headed by Phil Amlot and supported by the appointments last year of Arjan van de Wall, business development director and Howard Lee, senior underwriter. To read Markel's news releases go to http://www.markelinternational.com/intl/news/2017/ and 
Congratulations to . . . 
QBE Insurance has been named the 'Best Trade Credit Insurance Provider' in Asia in the 2016 CFO Innovation Awards. QBE was recognised by Chief Financial Officers in the region for providing excellent customer support and innovative trade credit solutions. 
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.
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New Appointments
QBE has announced that Benedict Nolan will be joining the UK QBE Surety team on 24th April as a Surety Underwriter. Previously, Mr. Nolan was surety bonds underwriter for Travel and General.
Atradius has named Vincent Ku as its country manager for Hong Kong and Taiwan. Mr. Ku has been promoted from regional sales manager with responsibility for growing Atradius’ business in China.
AIG has appointed former Euler Hermes UK CEO Richard Webster to newly created role, Head of Credit Lines. Mr. Webster led the UK division of Euler Hermes between 2002 and 2008.
Markel International has announced it has appointed Damian Manning to head up the new Surety team and David Chandler as senior underwriter. For the last six years,  Mr Manning has worked as London markets surety manager for Aviva and immediately prior to that as surety manager for the UK and Ireland at Coface. Mr Chandler previously worked as risk director - bonding for Euler Hermes UK.
Sace has announced that it has hired Valerio Perinelli as general manager for its Sace BT subsidiary. Mr. Perinelli was most recently Managing Director of Euler Hermes UK & Ireland.
Aon Australia has announced the appointment of Dan Chapman to lead its Surety, Trade Credit and Political Risk business. 
Business Information
UK SMEs miss out on over £250 billion of liquid cash flow because of slow and late payments. A new report from Siemens Financial Services has found that when unpaid invoices to UK companies are taken collectively, and added to the cost of the time and resources spent chasing their progress, the total value of the late payment problem for UK SMEs exceeds £250 billion. According to the research, SMEs also tend to suffer from slow or late payments disproportionately compared to other businesses; businesses with a turnover of under £1 million wait for 72 days for payment on average compared to 48 days for the UK's largest companies. Overall, unpaid invoices account for 14% of SMEs’ annual turnover and, according to the Association of Business Recovery Professionals, late payment is a major factor in one in five corporate insolvencies. To read Siemens Financial Services' report go to https://www.siemens.com/content/dam/webassetpool/mam/tag-siemens-com/smdb/financing/brochures/united-kingdom/sfs-uk-late-payment-report.pdf.
27% of exporting UK small firms will be deterred from trading should any tariff be introduced. The Federation of Small Businesses' (FSB) latest report, ‘Keep Trade Easy: what small firms want from Brexit’, indicates that the top priority market for 63% of UK small firms is still the EU single market, followed by the US (49%), Australia (29%), China (28%) and Canada (23%). The research also reveals the potential impact of tariffs being introduced to UK-EU trade, with 27% of exporting small firms genuinely deterred from trading with the EU should any tariff – no matter how low – be introduced. Crucially, small business exporters and importers also find non-tariff barriers (such as administrative burdens in dealing with customs) to be as equally important as tariffs. To read the FSB's news release go to http://www.fsb.org.uk/media-centre/press-releases/small-firms-reveal-trade-deal-wish-list-post-brexit.
A third of EU trade is with the US and China. New research from Eurostat has found that in 2016, the US (€610 billion, or 17.7% of total EU trade in goods) and China (€515 billion, or 14.9%) continued to be the two main goods trading partners of the EU, well ahead of Switzerland (€264 billion, or 7.6%), Russia (€191 billion, or 5.5%), Turkey (€145 billion, or 4.2%) and Japan (€125 billion, or 3.6%). Trends observed over the past years are however very different for these top trading partners of the EU. After recording a significant and almost continuous fall until 2011, the share of the US in EU total trade in goods has begun to increase again. The share of China has almost tripled since 2000, while the share of Russia of Japan has nearly halved since 2013. As for Switzerland and Turkey, their respective share of EU trade in goods has remained relatively unchanged over the entire time period. To read Eurostat's news release go to http://ec.europa.eu/eurostat/documents/2995521/7958465/6-29032017-AP-EN.pdf/6ab52f0c-de18-42c3-aa65-28e1a1675213.
The text above is a modification of a Eurostat news release. Eurostat does not accept any responsibility for this material.
Worldwide business expectations for economic expansion hit a 10 year high. According to a new survey from American Express and Thought Leadership Studio, global expectations for substantial economic expansion have hit a 10 year high (38%), and 70% of executives worldwide anticipate either modest or substantial growth this year - up from 64% last year. Overall, North America now has the most optimistic outlook on economic prospects worldwide, with 67% of respondents anticipating substantial economic expansion - the highest level for any region since this study began in 2008. In contrast, European expectations for economic expansion have declined year over year, with just 33% of respondents expressing optimism - down from 62% in 2016. The UK while most positive in the region, experienced the greatest drop in optimism, with 33% (down from 75% in 2016) expecting economic expansion. To read American Express' news release go to http://about.americanexpress.com/news/pr/2017/Global-Business-Outlook-Amex-Survey.aspx.
Mid-sized Australian businesses owe AU$8 billion in outstanding payments to suppliers. Dynamic Business has published an article which warns that late payment research from Amex, Xero and American Express highlights the cashflow burden suffered by Australian SMEs. American Express' research show that mid-sized Australian businesses owe AU$8 billion in outstanding payments to suppliers, with more than AU$2 billion currently overdue. In related news, cloud accounting provider Xero's recent survey of 500 Australian SMEs has found that 86% want the federal government to do more to address late payments by big business, and 79% support a government-backed policy to reduce the time it takes big businesses to pay small businesses  Six in ten companes said they wouldn’t survive more than three months if all invoices went unpaid while 6% said they wouldn’t last a week. To read Dynamic Business' article go to http://www.dynamicbusiness.com.au/small-business-resources/finance-cash-flow/late-payment-research-from-amex-and-xero-highlights-the-cashflow-burden-for-smes.html.
Advice on payment practice reporting for UK businesses. The Construction Index has published an article, 'Advice on payment practice reporting', which clarifies the impact that the Reporting on Payment Practices and Performance Regulations 2017 will have on the Construction sector; a sector which Euler Hermes named as registering more payment delays than any other UK sector. Affected contractors (those with an annual turnover exceeding £36 million, a balance sheet exceeding £18 million or with more than 250 employees) have one financial year from the regulations’ start date to report information on the payment terms for all relevant contracts. The Federation of Small Businesses (FSB) has calculated that 50,000 'business deaths' could be avoided if payments were made on time – adding £2.5 billion to the UK economy. To read The Construction Index' article go to http://www.theconstructionindex.co.uk/news/view/advice-on-payment-practice-reporting.
British mid-sized companies boost overseas turnover despite the shadow of Brexit. According to new research from BDO, British mid-sized businesses' international turnover has grown by 50% - from £84 billion to £127 billion - since 2011. This growth significantly outstrips that of UK FTSE 350 and small businesses, which in fact has fallen by 14% (£425 billion to £366 billion) and 25% (£13.9 billion to £10.4 billion) respectively. BDO advises that the research shows that even with the shadow of Brexit negotiations looming, mid-sized firms remained confident and continued to grow overseas turnover; increasing overseas trade by 7% (from £119 billion to £127 billion). In comparison, the levels of overseas trade of FTSE 350 and small businesses in 2016 fell 30% (from £524 billion to £366 billion) and 13% (from £12 billion to £10.4 billion) respectively. Overall, the UK's 30,000 mid-sized companies (1.5% of all UK companies) contribute one-third (£1.2 trillion) of all UK turnover. To read BDO's news release go to https://www.bdo.co.uk/en-gb/news/2017/british-mid-sized-companies-boost-overseas-turnover.
UK growth upgraded for 2017 but to remain flat in the medium-term. The British Chambers of Commerce (BCC) has upgraded its UK GDP growth forecast for 2017 from 1.1% to 1.4%. However, it has downgraded its expectations slightly for 2018 (from 1.4% to 1.3%) and predicts 1.5% growth in 2019. The BCC has upgraded its growth forecast for 2017, driven by an upward revision to UK GDP growth data in the final quarter of 2016, and stronger than expected levels of consumer spending. There has also been a slight improvement in the outlook for investment and trade, compared to the previous forecast. However, economic growth is expected to remain well below its long-term average over the forecast period. To read the BCC's news release go to http://www.britishchambers.org.uk/press-office/press-releases/bcc-economic-forecast-uk-growth-upgraded-for-2017-but-to-remain-flat-in-the-medium-term.html.
UK Retail sales expanded at steady pace in year to March. UK Retail sales volumes grew at a steady pace in the year to March, and slightly faster than expected, according to the CBI’s latest monthly Distributive Trades Survey. The survey of 116 firms, consisting of 65 retailers, showed that growth in the volumes of sales was similar to that seen in February, but is set to accelerate in the year to April. 44% of retailers said that sales volumes were up on a year ago, whilst 35% said they were down, giving a balance of +9%. In addition, 24% of retailers said the volume of sales were good for the time of year, with 31% saying they were poor, giving a balance of -6% - the lowest survey balance since July 2016. To read the CBI's news release go to http://www.cbi.org.uk/news/retail-sales-expanded-at-steady-pace-in-year-to-march/.
UK business rates to rise in 2017: The ripple effect. According to a new research by Sage, impending rises to business rates (following the first revaluation of business premises in seven years) are expected to have serious consequences for many firms in London and the southeast. Although businesses in areas where the property market is less buoyant will not be so badly affected, areas of London that were once ‘up-and-coming’ and attractive to small businesses are now associated with some of the steepest rises in business rates. Sage warn that should individual companies go out of business, the danger of a ‘ripple effect’ is particularly prominent in these areas, and the aftermath of this increase could extend far wider to affect a number of other businesses and communities. To read Sage's blog go to http://blog.sage.co.uk/index.php/2017/03/business-rates-rises/#.WNP7rfmLSUk.
IEA warns that Irish exports to mainland Europe will be seriously implicated by a ‘hard Brexit’. The Irish Exporters Association (IEA) has released results of a recent survey, 'Quarterly Export Eye Q1, 2017', conducted with its members regarding Irish exporters’ sentiments and has found that 94% of its members currently do business with or export to the UK. However, following the Brexit referendum, 58% of IEA members are planning to diversify export markets, with the US (25%), Germany (22%), France (21%), Belgium (16%), China (16%) and Poland (16%) being the most popular targets. Overall, when members were asked to rank major threats to the Irish economy in 2017, 81% of IEA members said Brexit. This was followed by: Donald Trump's US presidency (63%), Ireland's cost competitiveness (59%), lack of affordable housing(47%), elections in Holland, France and Germany (46%) and lack of availability of skilled talent in Ireland (32%). To read the IEA's report go to http://www.irishexporters.ie/wp-content/uploads/2017/03/IEA_QEE_March17_Report.pdf.
UK High Street sees worst February in eight years. According to BDO’s latest High Street Sales Tracker, UK retailers have just experienced their worst February since 2009, with like-for-like sales dropping -2.2%. The decline, coming off an already negative base of -1.7% for February 2016, marks the third month in a row of negative growth and the fourth consecutive February with no growth. Sophie Michael, Head of Retail and Wholesale at BDO LLP, commented: “February saw a perfect storm – both figuratively and literally. Doris kept shoppers away from the high street, but the relatively poor growth of online sales in February shows that the economic headwinds significantly curbed spending." To read BDO's news release go to https://www.bdo.co.uk/en-gb/news/2017/high-street-sees-worst-february-in-eight-years.
Late payments: A cultural issue for UK SMEs? An article in Real Business suggests that the UK has developed a culture of late payments. The Federation of Small Businesses (FSB) has found that SMEs account for 99% of all private sector businesses in the UK, many of which struggle with basic cash flow issues as a result of late payments. In addition, a recent study by BACS found that SMEs in the UK are owed a staggering £26.3 billion in overdue payments. As a result, the UK government is taking active steps to address the issue of late payment, such as the implementation of a new statutory reporting duty for payment practices and performance, and the appointment of a small business commissioner. To read Real Business' article go to http://realbusiness.co.uk/accounts-and-tax/2017/03/14/late-payments-a-cultural-issue-for-smes/.
Coventry and Warwickshire’s fastest growing companies boost the local economy by £11 billion. According to the Coventry and Warwickshire Growth Barometer published by BDO, Coventry and Warwickshire’s fastest growing companies have boosted the local economy, increasing revenues by 17% to £11 billion. Businesses from nine different sectors appeared on the list, with manufacturing and engineering companies making up 14 of the top 50. However it was real estate and construction that experienced the fastest growth, with a 50% average increase in turnover in the last year. The hospitality and leisure sector was close behind (44%), while technology and media companies reported a 23% increase in revenues. To read BDO's news release go to https://www.bdo.co.uk/en-gb/news/2017/fast-growth-local-companies.
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)
Business Development Manager: Trade Credit 
Have you sold Trade Credit Insurance? Does working for an industry leader appeal? Would you like to work for a multi billion euro turnover business with a presence in over 100 countries? If you're a through and through hunter of new business and have previous experience of selling Trade Credit Insurance please read on. 
Package: Basic salary of up to £45,000 plus an uncapped commission structure and company car or car allowance 
Job Purpose: The successful candidate will be responsible for the acquisition of new business promoting credit insurance. 
Objectives: 
  • To deliver sales meeting individual and team new business targets 
  • Ensure prudent Commercial Underwriting of Credit Insurance Business 
  • To take joint ownership of the loss ratio on the portfolio with the Risk department and deliver a profitable result to the business 
  • Develop relationships with brokers and other intermediaries 
  • To maximise the opportunities for all product lines, thereby maximising contribution 
  • Work closely with Customer Relations Department to ensure a timely and efficient service to clients and brokers 
  • Update and maintain systems 
  • Support other Commercial Teams to assist in the delivery of company objectives 
Benefits/Package: 35 hour working week; 25 days annual leave plus public holidays, rising with service; Pension contribution; Life assurance - 4 x basic salary, Private health, Company car/allowance, Season ticket loan. 
For further information please contact Dale Hackney on 02079299643 or dale.hackney@reedglobal.com. 
(Please mention that you saw this vacancy on Credit Insurance News' Job Board)
Branch Director – Credit Insurance. Leeds city Centre.  Executive-level salary plus bonus & benefits. Job Ref: RJ-1451. 
 Our client is one of the biggest names in the world of insurance that, alongside controlling the largest corporate portfolio in Yorkshire, happens to run a very successful Credit Insurance Branch out of the Leeds city centre office. The business is performing incredibly well, both nationally and regionally, having recently picked up very high profile cases, swelling its Leeds branch’s profitability further. In this challenging role, you will take full P&L responsibility for a £1M income branch including the management of 10 credit insurance specialists comprising Brokers/ Handlers, Sales Executives and Admin/ Support personnel. 
We seek an inspirational leader and welcome applications from those from a Trade Credit background, other disciplines of insurance (Insolvency, Commercial, Underwriting) or from finance-related niches such as Invoice Discounting, Factoring or Commercial Banking/ Lending. To apply, please email richardjones@astoncharles.co.uk and/or call 0345 1932465. 
(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
Russia Trade & Export Finance Conference 2017, 12 April 2017. Moscow.
Being the only annual conference for Russia’s trade and export finance community, the Russia Trade & Export Finance Conference provides a perfect opportunity to meet, network and learn from a great number of like-minded organisations currently doing business with Russia and its key trade partners. 
No need to plan dozens of meetings over the course of a week – meet all stakeholders involved in regional trade here, in the same place, on the same day. 
Kicking off proceedings will be conference chairman Igor Emelyanov, Managing Director, Trade & Export Finance at VTB, followed by a keynote address from Anton Stroutchenevski, Chief Economist from Sberbank CIB, who will identify the interplay of key factors shaping future economic growth prospects in Russia and share perspectives on their impact on international trade, investment and financial markets.
Also on stage will be high level representatives from the likes of Gazprom-Neft, Exiar, Acron Group, Mechel, United Wagon Company and many more, providing you with unrivalled insight into the opportunities and challenges available in this exciting market. 
Topics to be discussed include 
  • The Russian economy: Expectations for 2017 
  • The impact of shifting economic fundamentals on corporate investment 
  • In search of a deal: Assessing appetite for trade and export finance 
  • The ECA outlook: Export and project finance in Russia 
  • Interview: Maximising working capital throughout the value chain 
  • Case study: Utilising blockchain technology for letter of credit settlements 
  • Exiar update: Setting strategic objectives for Russian exports 
  • The foreign investor’s perspective: Opportunities in Russia and Central Asia.
Click here for more information.
Asia Trade & Supply Chain Finance Conference 2017, 19 April. Hong Kong.
Hong Kong offers a business-friendly environment and unrivalled connectivity to global, regional and the mainland China markets, making it an ideal host for the GTR Asia Trade & Supply Chain Finance Conference 2017. 
Returning for its third year, the conference will continue to build on its reputation as a key networking forum for leading trade and supply chain finance specialists from across the Asia region. Experts from various sectors will gather once again to discuss topical issues including: 
  • How global markets have impacted trade for both corporates and banks 
  • An update on current supply chain and fintech needs and availability 
  • How the global geopolitical environment is impacting exports and domestic trade.
2016’s conference will build on GTR’s respected format of networking sessions, providing delegates with an ideal platform for establishing new relationships with those keen to do business within the region. 
Click here for more information.
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.
GTR’s East Africa Trade & Commodity Finance Conference. 9-10 May, Nairobi.
GTR’s East Africa Trade & Commodity Finance Conference returns to Nairobi on May 9-10 for its ninth consecutive year!
Bringing together the region’s leading corporates, traders and financiers for 2 days of on and off-stage discussion and debate about various political, economic and social risks and opportunities faced by Kenya and its region, 2017’s event will provide the ideal networking and learning platform to over 200 delegates from all over the world expected in attendance.
As a supporting partner of this event, we managed to secure a 15% to our readers and followers when booking online when using CIN15 code. To register or for more information, please contact Judith Mülhausen or click here.
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: Arthur J. Gallager
Arthur J. Gallagher’s Trade Credit Practice is one of the largest specialist trade credit insurance brokers in the UK. 
We arrange and service policies for smaller companies through to multinational organisations demanding innovative global solutions. 
Whether your need is fairly straightforward or highly complex, Arthur J. Gallagher is an insurance broker whose knowledge, skill and expertise you can depend on. 
We offer a comprehensive, thorough and passionate approach – we’ll help you find the product and insurer that’s right for you, explain to you the in’s and out’s of your policy, help to maximise your credit limit coverage, assist in getting your claims paid quickly and diligently and much more… 
We understand that you can’t build a reputation on what you promise to do. We aim therefore to be good at what we do not just some of the time, but all of the time, and do it better than our competitors.
Copyright © 2017 Credit Insurance News. All rights reserved.
All news stories on Credit Insurance News' website are included with the prior permission of the copyright holder. Reproduction or redistribution in whole or in part, in any manner, without the express prior written consent of the copyright holder, is a violation of copyright law. If you, or your organisation wish to redistribute, republish or link-to all or any part of any Credit Insurance News Digest, you must first contact the copyright holder direct or email sally.brown@creditinsurancenews.co.uk for further information.

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