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Welcome to issue 92 of Credit Insurance News Digest. The industry newsletter devoted to the global trade credit insurance industry.
This issue is sponsored by AIG.

  Index
 
Credit Insurance News
The challenge of increased trade credit insurance claims and falling premiums. In a Berne Union Yearbook article, 'Growth opportunities high for political risk and credit insurance providers', Daniel Riordan, President of Global Political Risk, Credit & Bond at XL Catlin, notes that the trade credit insurance claims environment has been relatively light in recent years, but that short-term export credit insurance (where tenors are generally 12 months or less) is where the highest frequency of claims occurs. Berne Union members have over the past three years seen moderate increases in short-term claims paid: US$2.0 billion in 2014, US$2.58 billion in 2015, and US$2.78 billion in 2016, while short-term credit insurance premiums over that period have fallen slightly. Mr Riordan warns that although the credit insurance market is healthy for the foreseeable future, if the loss ratio continues to rise without a corresponding increase in premium, this will eventually hurt insurers’ results and create changes in the marketplace. To download a copy of the Yearbook go to https://www.berneunion.org/Publications. Mr Riordan's article in on page 59-60.
Trade credit insurance causes Misco UK to cease trading. The Credit Protection Association (CPA) has published an article which attributes the recent failure of Misco UK to actions taken by trade credit insurers. Joint administrator Geoff Rowley said: “Misco UK had made great progress since the change of ownership and new investment in March this year but the company’s turnaround plans could not deal sufficiently with the rapid deterioration in cash-flow after the sudden tightening of credit insurance terms.” James Salmon, Operations Director at the CPA, commented: “this is just another reminder of the credit risk dangers that can exist for even sizeable operations. Many creditors will have traded with Misco, unaware of their perilous situation. It is a reminder of the importance of having proper credit checking procedures.” To read CPA's article go to https://cpa.co.uk/credit-insurance-causes-misco-uk-cease-trading/.
Trade credit insurance tightens for Maplin Electronics. An article in The Register has reported that credit insurers are cutting their exposure to Maplin Electronics amid some reports of declining profits and broader concerns about retailing. The article advises that QBE slashed available cover on Maplin by more than 80% in September and has recently removed the limit completely. Euler Hermes and Atradius have also scaled back their exposure to the high-street retailer, two sources claimed. A Maplin spokesman told The Register: "As part of our normal quarterly reporting process we will shortly be updating credit insurers on our financial position, which we anticipate will reassure any broader sector worries." The Maplin representative also said that a credit insurer recently doubled the credit level following a meeting with management but did not name them, citing commercial sensitivity." To read The Register's article go to https://www.theregister.co.uk/2017/10/24/credit_insurance_tightens_for_maplin/.
Changes in the trade credit insurance industry as a consequence of the credit crunch. The latest ICISA Insider (p14-15) contains an article in which Bert Zandvliet, Senior Risk Underwriter at MunichRe, identifies some of the significant changes that the trade credit insurance industry has dealt with as a consequence of the credit crunch. Mr Zandvliet notes, for example, that in general clients of trade credit insurance companies have become more demanding, while insurers are, as a consequence of the changed market conditions, limited in their freedom to make decisions regarding pricing, level of credit limits, percentage of cover, etc. The number of participants in credit and related lines is also larger than it has ever been before, which has had an impact on the behaviour of potential policyholders and brokers; "sometimes risks are presented to the market that in the past would not have been considered." An additional effect has been a rise in non-traditional, complex products with a high level of creativity and innovative drive. Products such as single risk cover, non-trade related cover, top-up cover and non-cancellable credit limits, all types of leasing- and factoring-structures, reversed or not, are examples that now play a more important role in the business than before.” To read ICISA Insider go to http://www.icisa.org/the-icisa-insider/files_content/The%20ICISA%20Insider%20-%20October%202017.pdf.
Trade credit insurance in the US markets responds to "unrelenting demand". Ironshore has published a blog by Daniel L. Sussman, President of Political Risk & Trade Credit at Ironshore, which describes how trade credit insurance is experiencing an emergence of sustainable growth within US markets as a result of three primary drivers: banks desire to monetise receivables, distressed retail markets, and corporate bankruptcies. Mr Sussman also notes that Ironshore has experienced an emergence of regional growth opportunities in this sector. ”As a speciality lines product, trade credit insurance programs have responded to unrelenting demand over the past three to four years as banks, multi-nationals and other global entities recognise the long-term value of protecting receivable assets in a trade financing transaction." According to the article, a study released by Marsh estimates that by 2018 premium will total about US$1 billion in the US, US$2 billion in Asia-Pacific, US$4 billion in Europe, and US$8 billion worldwide. To read Ironshore's blog go to http://www.ironshore.com/blog/understanding-trade-credit-insurance-in-us-markets. 
An optimistic perspective on the future of the global trade credit insurance industry. The Berne Union's latest yearbook for 2017 includes an article in which Vinco David, secretary general, Berne Union reports that new trade-related business for 2016 was made up of $1.63 trillion in short-term export credit insurance, a positive increase of 3% over 2015’s figure. Also, claims payments decreased in 2016 compared to the previous year; in 2015, the total volume of claims paid as a result of insolvency or political events was $6 billion, whereas last year this figure was half a billion less. However, while this is a positive adjustment, it should be noted that, in context, these figures are still high – comparable in fact, to the levels seen in 2009, at the depth of the credit crisis. To read the Berne Union's summary of the short-term credit insurance market in 2016 go to https://www.berneunion.org/Publications. Mr David's article is on page 16-19.
Nexus anticipates that in 3 years it will become one of the top 6 trade credit insurance companies globally. Insurance Business UK has reported that Nexus Group's appointment of Charles Penruddocke (see 'New Appointments' below) as non-executive deputy chairman of Nexus CIFS and Equinox Global, comes as Nexus seeks to expand in the trade credit class. This includes organic growth via its trade credit MGA Nexus CIFS, and acquisitive growth as a result of recent purchases of trade credit MGA Equinox Global and trade credit intermediary Credit Risk Solutions. Colin Thompson, founder and Executive Chairman of Nexus, said: “We believe we have created the largest Trade Credit MGA outside of the US with a leading range of proprietary product offerings out of 5 different countries, GWP of £60 million, income of £13.5 million and 55 employees. Within 3 years, we see this growing into GWP of £100 million out of 7 operating countries, and positioning ourselves as one of the top six credit insurance companies globally.” To read Insurance Business UK's article go to http://www.insurancebusinessmag.com/uk/news/breaking-news/nexus-names-nonexecutive-deputy-chairman-for-trade-credit-mgas-83934.aspx.
Trade credit insurance can be a powerful risk management tool. The European Financial Review has published an article by US attorneys Peter A. Halprin and Vivian Costandy Michael, 'Trade credit insurance – a risk management tool in turbulent economic times', which describes how trade credit insurance, with proper counsel, can be a powerful risk management tool. The article also provides advice to purchasers on the steps they need to take to ensure that the policies they purchase will cover any losses that occur, and notes that when disputes between trade credit policyholders and their insurance companies arise, they tend to involve insurance company allegations of non-disclosure and are often resolved behind closed doors in arbitration. To avoid this, the writers suggest that maximising claims recovery requires a three-pronged approach: identifying potentially material facts, disclosing them in writing during underwriting, and maintaining a helpful, cooperative, open flow of information.To read The European Financial Review's article go to http://www.europeanfinancialreview.com/?p=19195.
The Russian trade credit insurance market has grown by around 30% since 2013. A new analysis by Euler Hermes has predicted that demand for trade credit insurance in Russia is set to grow. Since 2013 the Russian trade credit insurance market has increased by around 30%, and in just the first half of 2017 the volume of premium collected by insurance companies (RUB 2.5 billion) is the best result for a first half in the last five years. However, low penetration is still one of the characteristics of the Russian trade credit insurance market, with the ratio of trade credit insurance premiums to GDP being 0.034% in Western Europe, but just 0.002% in Russia. In addition to this, Russian businesses are still very conservative in managing their risks and insurers are setting high standards for the quality of information and its accuracy. To read Euler Hermes' news release go to http://www.eulerhermes.com/mediacenter/news/Pages/Euler-Hermes-Cautious-optimism-forecast-for-Russian-economy-in-2018.aspx.
Berne Union members anticipate further trade credit Insurance growth across developed markets in 2018. The Berne Union has advised that members of its short-term trade credit insurance committee had collectively issued credit limits of US$1,188 billion at the mid-point of the year. This is 18% higher than the situation at year end 2016, where they stood at US$1,007 billion. Two thirds (67%) of members surveyed also expect further increases in business volumes over the coming 12 months, and the majority of the remainder (27%) anticipate a stable continuation of the current position. Growth is expected across developed markets generally, especially North America and the European Union, where economies are benefitting from improving fundamentals, relaxed lending conditions and increasing domestic demand. To read The Berne Union's news release go to http://cdn.berneunion.org/assets/Images/OCT2017_AGM_Belgrade.pdf.
Technology in the trade credit insurance market will have an "Uber moment”. Insurance Post has published an article, 'International: Trade credit demand is up', which discusses the current "increasingly established" credit insurance market and its challenges. Steve Taylor, Head of Capital and Structured Projects at Aon, comments that he sees wider opportunities for financial institutions to take advantage of trade credit insurance. “Particularly in export finance and receivables finance, where there are opportunities for further syndication and top-up.” Mr Taylor says the growing fintech sector is also an opportunity. “This will be one of the areas that we will see impact the market. We will have an Uber moment; we just don’t know when it will be.” Will Clark, Head of Trade Credit at Sompo Canopius, stresses that new European political instability and financial regulations are also pushing demand for trade credit cover, especially in the current situation environment where new economic and political risks can arise with little warning at any moment (the Catalonia referendum is given as an example). To read Insurance Post's article go to https://www.postonline.co.uk/lloydslondon/3326311/international-trade-credit-demand-is-up.
Nexus acquires UK trade credit broker Credit Risk Solutions. Nexus Group has announced that it has acquired Credit Risk Solutions Ltd (CRS). Established in 2003, CRS is a leading independent specialist Trade Credit broker operating from offices in Halifax, Manchester and Birmingham. CRS will continue to be led by its founding shareholders Mike Clark, Hayden Tennant and Lisa Humphries and will remain an open market broker, independent of the underwriting operations of the Nexus Group. Post-acquisition, Sue Morley will join the CRS board as a Non-Executive Director. This is the fourth acquisition Nexus has completed during a busy and transformational year. Following this acquisition, the Nexus Group advises that it is now on track to deliver actual EBITDA in excess of £10 million, and a pro-forma EBITDA in excess of £14 million in 2017. To read Nexus Group's news release go to http://www.nexusunderwriting.com/trade-credit/news-and-comment/detail/nexus-acquires-specialist-trade-credit-broker-credit-risk-solutions.
40% of British businesses do not have any information on who are the players in their supply chain beyond the first or second tiers. QBE has published a report 'Understanding and protecting your supply chain', which looks at 20 indicators of threats to supply chains in fifteen European markets. The report notes that it is estimated that 40% of British businesses do not have any information on who are the players in their supply chain beyond the first or second tiers. Professor Denis Kobzev, director of business education at Leeds Trinity University, says: “The business may not realise how complex and extended its supply chain is.” They may also be put off by the complexity of compiling this information and stop at first-tier suppliers. Of the three Supply Chain Index summaries currently available for France, Germany and Italy, Germany achieves the best score of 51 (7th position out of 15), and Italy the worst score (20) placing it in 14th position. To download the full report go to https://qbeeurope.com/news-and-events/reports/understanding-and-protecting-your-supply-chain/.
Nine out of ten suppliers surveyed in Asia Pacific experienced late payment of invoices from their B2B customers over the past year. Atradius' latest Payment Practices Barometer for Asia-Pacific has noted that after a minor decrease from 45.0% in 2015 to 44.3% in 2016, the percentage of overdue B2B invoices in Asia-Pacific increased again this year to 45.4%. In total, 89.6% of respondents in Asia-Pacific reported late payments from their domestic B2B customers and 88.8% of respondents said that they experienced late payments from foreign B2B customers. The average frequency of late payments was the highest in China (domestic 93.9%, foreign 96.0%) and the lowest in Japan (domestic 67.3%, foreign 74.7%). Overall, the percentage of overdue B2B invoices in Asia-Pacific is lower than that registered in the Americas (48.8%) but slightly higher than that in Europe (41.1%). To read Atradius' news release go to https://group.atradius.com/publications/payment-practices-barometer-asia-pacific-2017.html.
The global economy is back to business. Euler Hermes has reported that global growth shifted up a gear in Q2 2017 - particularly in the US, the Eurozone, China and Japan - and has confirmed its 2017 and 2018 global growth forecasts at around 3%. In addition, global trade is rebounding in value terms in 2017 at 7.0%, after two consecutive years of contraction, and this trend should continue with trade expected to grow by 5.7% in 2018. Katharina Utermöhl, Senior Economist Europe for Euler Hermes and Allianz, commented: “The global economy is experiencing the broadest synchronised upswing in a decade. . . For 2018 the economic outlook remains bright in light of reduced political uncertainty, rising employment and the upbeat investment outlook due to growing capacity constraints." To read Euler Hermes' news release go to http://www.eulerhermes.com/mediacenter/news/Pages/Greece---Back-to-growth.aspx.
Are AI and blockchain the future of trade credit? bobsguide has published an article in which Tinubu Square's CEO, Jérôme Pezé, discusses the challenge faced by trade credit insurers to provide a seamless, responsive and integrated solution for their clients in a growing marketplace. He also describes the significant opportunities offered to the industry by new technologies, data analytics and blockchain. "If you look at any transaction in trade, including insurance, it is more digitised and certified than ever before. There is potential here for blockchain to do both functions and play a key role in the total digitisation of trade finance transactions, as well as ensuring the proper handling of risk." To read bobsguide's article go to http://www.bobsguide.com/guide/news/2017/Oct/19/are-ai-and-blockchain-the-future-of-trade-credit/.
Structured trade credit insurance broking services to be offered by new UK market entrant. Maven Capital Partners has announced that it has made a £3 million commitment to Altra Consultants to fund the growth of its Lloyds of London registered insurance broking subsidiary, Parker Norfolk & Partners Limited, which Altra completed the acquisition of in August 2017. Altra was established in 2011 by Alan Wallace and Tracey Anderson with the aim of developing a multi-line insurance Lloyds of London broking business. Both are seasoned veterans within the trade credit insurance sector and have a track record of having previously started and grown a successful insurance broking business, International Risk Consultants (IRC), before exiting to work for R.K. Harrison Financial Risk Limited as Chairman and Operations Director respectively. Initially, Altra will offer structured trade credit insurance broking services, with a medium-term plan to further diversify and grow into a multi-line business. To read Maven Capital Partners' news release go to http://www.mavencp.com/about/latest/545-maven-to-invest-3-million-in-altra-consultants.
Aon to acquire Henderson Insurance Broking Group. Aon has announced its plan to acquire Leeds-based Henderson Broking Group (HIBG), one of the UK’s largest independent brokers, focusing on general insurance, health and benefits, and trade credit insurance. HIBG clients range from large corporate businesses, through to mid-market and SME businesses and it employs over 400 people across 16 offices, predominantly in the north of England, but with clients and business across the UK. HIBG will become part of Aon Risk Solutions UK, which provides risk and insurance solutions and services to clients across a range of industries and specialisms. To read Aon's news release go to http://aon.mediaroom.com/news-releases?item=137639.
PIB Trade Credit team rebrands to PIB TradeRisk Solutions. PIB Insurance Brokers (part of PIB Group) has announced that it has rebranded its PIB Trade Credit, Political Risks & Surety team. Moving forward, the team will be known as PIB TradeRisk Solutions. The team has also recently expanded through the appointment of Nicola Salmon (see  'New Appointments', Credit Insurance News Digest, 8 October), as well as David Hatt as Trainee Broker. Brendan McManus, CEO of PIB Group, commented: “Richard and the team’s continuing focus on client service means that the new team name PIB TradeRisk Solutions better reflects our wide-ranging product lines across the credit and political risk insurance spectrum.” To read PIB Group's news release go to http://www.pib-insurance.com/news/pib-trade-credit-team-rebrands-pib-traderisk-solutions/.
Meridian teams up with Texel. GTR (Global Trade Review) has reported that the Texel Group has acquired a 50% interest in Meridian Finance Group. Meridian specialises in brokering domestic and export credit insurance, as well as arranging trade finance for cross-border transactions. Texel is a privately-owned and independent Lloyd’s insurance broker, with offices in London and Singapore, specialising in the fields of credit and political risk insurance. Meridian’s founder and president, Gary Mendell, commented that together Texel and Meridian will work with every credit insurance and political risk underwriter in the USA, Europe, Bermuda, Singapore, Africa, and the Middle East – including insurance companies, Lloyd’s of London, and government export credit agencies. To read GTR's article go to https://www.gtreview.com/news/on-the-move/texel-expands-to-us-acquires-stake-in-meridian/.
Arthur J. Gallagher rebrand revealed. Insurance Business has published an article which reports that Arthur J. Gallagher has announced a phased rebranding to just Gallagher as part of its 90th-anniversary celebrations. The parent company name - Arthur J. Gallagher & Co - remains the same.  The transition is expected to be completed over a period of around six months, with the new branding already introduced on the company’s website. Speaking about the decision to rebrand, a company spokesperson commented to Insurance Business that shortening the name simply reflects the way in which many of its clients already refer to the firm. To read Insurance Business' article go to http://www.insurancebusinessmag.com/uk/news/breaking-news/arthur-j-gallagher-rebrand-revealed-83356.aspx.
Leveraging trade credit insurance for the banking industry. Aurélien Paradis, CEO of AU Group Middle East Insurance Brokerage, has published an article on LinkedIn in which he describes how in a trading hub, such as Dubai, bankers can efficiently leverage trade credit insurance to increase the pre-export finance facility available to their clients. However, he believes that the current local practice of endorsing the trade credit insurance policy to the bank through a ‘loss payee’ contract endorsement, does not offer sufficient guarantees for the lenders: "it is no more than a risk mitigation tool." Instead, Mr Paradis suggests that in his view, insuring the lender directly against the risk of default of the borrower who is the client of the bank, is by far the best solution for the banking industry. "I am convinced that such trade credit insurance structures will represent a large share of the market in Dubai in the coming years." To read the article go to https://www.linkedin.com/pulse/leveraging-trade-credit-insurance-banking-industry-aur%C3%A9lien-paradis/.
The global opportunities for trade credit insurers prepared to embrace change. Jérôme Pezé, CEO and founder, Tinubu Square, has contributed an article to the Berne Union Yearbook (p79) in which he warns that the credit insurance industry needs to break into new geographic markets and adopt new technology to keep pace with changing regulation and stay cost competitive. He stresses that there are vital geographies and market segments that are simply untapped from a credit insurance perspective, and suggests that to realise the huge opportunities they present the industry must re-evaluate its proposition to customers. To download a copy of the Yearbook go to https://www.berneunion.org/Publications.
Q&A with Acumen's Rob Coulton. Markel's latest newsletter, 'TCPRS Matters', contains a Q&A with Rob Coulton, Branch Director at Acumen Credit Insurance Brokers. Responding to the question, 'What’s the biggest change you have seen in the industry since you became involved?', Mr Coulton notes that a major change has been the increasing availability of non-cancellable cover, and a significant increase in the non-Lloyd’s carriers that offer trade credit rather than the three or four 20 years ago. "As such, the competition in our marketplace has increased and also the products available." He also compares his experience when he first entered the industry - when limit requests were made by fax and could take 2-3 days to turnaround, and financial data might be couriered on microfiche from Companies House, with the 2-3 hours that a limit might take to approve now. To read the Q&A go to http://www.markelinternational.com/regions/london-market/Markel-News-October-17/TCPRS-broker-QA/?dm_i=19BZ,59CAU,C20B4B,K9LTU,1.
Getting to know Markel's new Political Risk Underwriter in Singapore. Markel's latest newsletter, 'TCPRS Matters', contains a Q&A, 'Getting to Know Alex Holcroft', with Markel's recently appointed Political Risk Underwriter in Singapore (see 'New appointments'  Credit Insurance News Digest, 13 September 2017). Questions include: What advice would you give to someone on their first day in the industry? Will technology destroy or support the future of the market? What’s the biggest change you have seen in the industry since you became involved? We also learn some personal information about Alex, including the fact that his childhood ambition was to be a pilot and he has appeared on Peruvian TV. To read the Q&A go to http://www.markelinternational.com/regions/london-market/Markel-News-October-17/Alex-Holcroft/?dm_i=19BZ,59CAU,C20B4B,K9LTU,1.
A condensed view of country risk assessments published by Atradius, Coface, Credimundi and Euler Hermes. AU Group has released its latest AU 'G Grade' for Q3 2017, an at-a-glance analysis of the major trends and the level of risks for each country based on real risk taken by major credit insurers collectively. In addition, the 'G Grade' includes seven key indicators for each country provided by the IMF Statistics Department which give a view on the trends and the level of risk per country. In this issue, in line with the improving economic outlook, more country risk ratings have been upgraded rather than downgraded. The most notable upgrade is Indonesia, which has been upgraded by three of the four underwriters. The most notable downgrade is Gabon. To download a copy of AU Group's free report go to http://www.au-group.com/how-to-monitor-country-risks/.
A stable outlook for the UK Machines trade sector. Atradius' latest Market Monitor Machines report for the UK has found that while UK business insolvencies are forecast to increase in 2017 and 2018, the machinery sector is not expected to follow this deteriorating trend. Export-oriented British machinery businesses have benefitted from the weakness of Sterling following the Brexit decision in June 2016, recording higher demand and activity. However, this has to some degree been offset by increasing import costs. As a result, Atradius reports that for the time being, its underwriting stance remains open to neutral for the machinery sector. To read Atradius' news release go to https://group.atradius.com/publications/market-monitor-machines-united-kingdom-2017.html.
Additional Market Monitor Machines reports are available for the following countries: the US, China, France, Italy, Indonesia, Denmark, Germany, Netherlands, Poland.
Nexus CIFS: Construction Seminar: 15 November 2017.
Nexus CIFS, in conjunction with Hawkswell Kilvington, are holding a construction Seminar on 'Commercial & Contractual Awareness', at the Bristol Golf Club on 15 November. The seminar is free or charge for Nexus CIFS policyholders and brokers and will be of interest to anyone involved in any aspect of the Construction trade. For more information and to reserve a place go to https://www.eventbrite.co.uk/e/2017-construction-seminar-commercial-contractual-awareness-bristol-tickets-36740252083.
Congratulations to  . . . 
Tinubu Square has been awarded the 2017 Trophées de l’International du Numérique (’International Digital Company Award 2017’) by the IE-Club and Business France. Trophées de l’International du Numérique  rewards French companies that have had a significant impact on the future economy, particularly from an international perspective. 
Markel International's team of intrepid cyclists who, on September 9th, set off on an epic 1,000-mile journey from Land's End to John O'Groats; a nine-day adventure through 23 counties in three countries to raise funds for Brainwave, Markel International’s charity of the year. Close to £10,000 has been raised so far - just shy of an original target of £12,500 - but donations for this good cause are still very welcome at https://www.justgiving.com/fundraising/markelintl.
Sue Morley, who recently retired from her role as Client Services Director of Nexus CIFS. Sue has extensive experience in the industry and has been a well-known and respected figure in the trade credit insurance and broking world for many years. Prior to Nexus CIFS, Sue was the London Branch Director at Aon Trade Credit, and was instrumental in starting the business that has become Nexus CIFS in 2000. She will continue her involvement in the industry in her new role as Non-Executive Director on the board of CRS.
Markel International for reaching the shortlist for a flurry of awards including:  Insurance Day company of the year, the Insurance Times insurer innovation of the year, the Reactions London Market Awards innovation of the year, the Insurance Times claims excellence awards and risk carrier of the year in the Insurance Insider Honours.
New Appointments
Nexus CIFS has announced that Ian Selby (formerly NCIFS Risk Underwriting Manager) has been promoted to the newly created position of Commercial Director. This role will cover the commercial activities of Nexus CIFS including renewals and new business. The position has been created following the announced retirement of Sue Morley. Ian has been with Nexus since 2008 and started in the trade credit insurance industry in 2005.
Avenue Insurance Partners, the recently launched credit insurance and surety broker, has appointed Karl Hague as Business Development Manager. Karl has over 12 years’ experience in credit management and risk, most recently with STA International. Avenue Insurance's Managing Director, Shaun Purrington, commented: "Karl’s broad experience in credit management along with his excellent business relationships makes him an excellent addition to our growing team." Avenue was launched in October and is backed by the Tavistock Group. More appointments are expected to be announced shortly.
Ironshore's Political Risk & Trade Credit team in Singapore has announced that it has appointed Sam Lim as Underwriter, Political Risk & Trade Credit, Asia Pacific. Sam joins Ironshore from AIG.
Euler Hermes has announced that it has appointed Krzysztof Rzepka Managing Director of Claims and Collections for Euler Hermes Poland, with responsibility for all aspects of the company’s claims and collections activity in that region. Krzysztof joined Euler Hermes in August 2009 as Deputy CEO and CFO of Euler Hermes Poland’s Collections team. 
Nexus Group has announced the appointment of Charles Penruddocke as Non-Executive Deputy Chairman of Nexus CIFS Ltd and Equinox Global Ltd. Most recently MS Amlin Bermuda’s Head of Specialty Lines and Global Product Lead, Charles has in excess of forty years of experience in underwriting and broking and has held successful leadership roles across four continents. 
Berne Union has announced two new appointments to its Secretariat team. Olga Kompaniets joins as the new Support Manager of the Short Term Committee. Olga has extensive experience in trade finance, including at Lloyds Bank, Barclays and Commerzbank. Eve Hall joins as Associate Director in charge of supporting the Prague Club Committee. Eve has wide experience in the media and the corporate financial services sector, including at PwC, NBC and the UK Financial Services Knowledge Transfer Network. 
Business Information & Reports
We are delighted to offer a small selection of some of the news items included in our new business information publication. Please go to Credit Management News Digest for more business information news.
Hard Brexit to cost UK economy £400 billion by 2030. Rabobank has warned that leaving the EU without a trade agreement would cost the UK economy £400 billion by 2030 and could cost up to 18% of UK GDP growth until 2030, compared to retaining EU membership. This equates to £11,500 per British worker. By comparison, negotiating a new free-trade agreement would cost the UK 12.5% of GDP growth by 2030, and 10% of GDP growth if the country was to undergo a soft Brexit - £9,500 and £7,500 respectively per British worker. The Rabobank study also suggests that a hard Brexit outcome, implemented in 2019 without a transition period, would result in the UK economy immediately falling into a two-year recession. For the FTA and the soft Brexit scenario there will also be a recession, but milder. To read Rabobank's news release go to https://www.rabobank.com/en/press/search/2017/20171012-brexit-scenariostudie.html.
The picture is worsening for businesses across the UK as one-in-four reports sign of distress. According to new research by R3, fewer UK companies are reporting signs of growth, and more firms say they have recently experienced at least one sign of distress, The research, part of a long-running survey of business distress by R3 and BDRC Continental, found that the number of companies reporting one or more signs of growth fell to 53% in September 2017, down from 64% in April and 62% in September 2016, and is the lowest figure since July 2013 (also 53%). Meanwhile, firms which said they had experienced one or more signs of distress jumped to 25%, up from one-in-five 20% in April this year and 21% in September 2016. The record low for the proportion of companies reporting one or more signs of distress is 17% in December 2015. To read R3's news release go to https://www.r3.org.uk/index.cfm?page=1114&element=30897&refpage=1008.
The UK is the only major European economy to record increasing bankruptcy rates. D&B's latest, 'Global Bankruptcy Report 2017', has described how worldwide company failures are continuing to decrease - and have done so since 2015. Of the 46 countries in D&B's analysis (28 European, 13 Asia-Oceania, 2 North American, 2 African and 1 South American), 28 experienced falling bankruptcy rates relative to the previous year. Meanwhile, the failure rate stagnated in two countries, and 16 countries saw the rate increase. However, in a notable change to D&B's previous report, the US, UK, China, and Brazil are now in the ‘deteriorating’ group. Failure rates in the US increased by 2.6% in the year to July 2017, a reversal of the improving trend witnessed in the last few years. Meanwhile, the UK is the only major European economy to record increasing bankruptcy rates, with a deterioration far more pronounced than in D&B's previous report (19.8% in the year through to June 2017, compared to 10.1% in 2016). To read D&B's report go to https://www.dnb.co.uk/content/dam/english/economic-and-industry-insight/217433-global-bankruptcy-report-2017-9-20.pdf.
The International Monetary Fund (IMF) downgrades expectations for UK economic growth. The IMF's latest 'World Economic Outlook' has warned that growth in the UK is projected to reduce to 1.7% in 2017 (0.3% lower than previously forecast in April) and to 1.5% in 2018. In comparison, the Euro area's growth will be 2.1% in 2017 and 1.9% in 2018 and advanced economies as a whole are predicted to achieve 2.2% and 2.0% growth respectively. The IMF also warns that the UK's medium-term growth outlook is highly uncertain and will depend in part on the new economic relationship with the EU and the extent of the increase in barriers to trade, migration and cross-border financial activity. For more information go to http://www.imf.org/en/Publications/WEO/Issues/2017/09/19/world-economic-outlook-october-2017#Introduction.
German export growth overtakes the UK. According to the latest European Export Index by BDO, Germany’s export growth rate has overtaken the UK’s for the first time in 18 months. In comparison, as pressures from the UK economy’s inflation push up the price of products, international markets are beginning to look elsewhere and the UK’s export growth rate is starting to slow down - although it continues to outperform the EU. The make-up of UK exports has also been shifting over the years. In 1995, manufactured goods contributed to around 60%% of all UK exports. Today, manufacturers are responsible for less than 45% of UK exports, with motor vehicles – the most significant exported manufactured product - accounting for 12.7%. In 2016, over half of UK car exports were sold to the EU, and just under 15% were sent to the US. To read BDO's news release go to https://www.bdo.co.uk/en-gb/news/2017/german-export-growth-overtakes-uk.
Hard Brexit would create a £17 billion fall in annual EU export revenues. According to 'The realities of trade after Brexit', a new report by law firm Baker McKenzie in conjunction with Oxford Economics, a hard Brexit could cost the UK's Automotive, Technology, Healthcare and Consumer Goods sectors a total of almost £17 billion per year in lost EU export revenues. The impact of a hard Brexit would be most notable in the consumer goods and automotive sectors, with a predicted £7.9 billion loss in annual UK to EU export revenue in the Automotive sector and a £5.2 billion loss in the Consumer Goods sector. Also, although both the UK and the EU would feel the impact of a hard Brexit and from the additional costs from tariff and non-tariff barriers, the affect would be significantly greater for the UK. To read Baker McKenzie's news release with a link to the full report go to http://www.bakermckenzie.com/en/newsroom/2017/09/the-realities-of-trade-after-brexit.
Career Opportunities

Major Loss Claims Adjuster
The person will be the Major Loss claims handler for EMEA for the Trade Credit/Political Risk and Surety Lines of Business.  The person in the position is: 
  •  AIG’s focused resource for EMEA for Trade Credit/Political Risk and Surety claims, recoveries and loss related issues; 
  • Responsible for the accurate and timely processing of all major losses for Trade Credit/Political Risk and Surety in EMEA; 
  • Responsible for monitoring and overseeing the technical work product of AIG’s Complex Claims Handlers for Trade Credit/Political Risk and Surety claims in the UK and other offices in EMEA 
  • Manage and direct outside advisors including counsel, adjusters, and consultants for EMEA matters; 
  • Assisting underwriters, insureds and brokers in loss minimization on a pre-claim basis; • assisting Underwriting in policy language issues, including ad hoc questions and new product development; 
  • Responsible for all home office level reporting to AIG management and to reinsurers on losses and potential losses; 
  • Responsible for establishing or ensuring that appropriate reserves are raised on a timely basis within EMEA for major losses and to oversee and consult with Complex Handlers as needed. 
Job Requirements:
 Previous work experience in legal, international business, or in political risk, trade credit insurance and/or surety involving business to business credit sales, credit evaluation, export transactional documentation, domestic lending, bankruptcy processes , claims handling experience,  and recovery experience.  
Ability to analyze policy and claim documentation and reduce to clear/ concise positions.
Ability to present matters, sometimes contentious, in an even, unbiased, and courteous manner. 
Computer skills in basic Office or similar software.  
Work ethic to follow through on large case load.  Ability to negotiate and be open minded , but to hold on positions despite pressure from claimants, brokers  or internal interests when appropriate.
For more information  and/or to apply for this position please contact Wesley Bates, Talent Acquisition Manager at AIG on (0)208 680 7253 or email wesley.bates@aig.com.
New Business Account Executive, Credit Insurance (ref: 31645). £40000 - £45000 + OTE £55000 - £60000. Buckinghamshire.
One of the UKs leading Trade Credit brokers is looking to attract an experienced, new business focussed Account Executive to support ongoing growth in the Buckinghamshire region.
Our client is the specialist division of a national insurance broking group, which considerable financial backing and consistent investment into technology and development. The wider group provides global reach in regards to clients and product range. The business is built on a consultative, advice driven approach, this extends to the working environment which is quality driven rather than high pressure.
With all the tools youd expect working for a market leader in the credit insurance field, your role will be the acquisition of new clients across your territory. Prospects will come from a variety of industry sectors and will range from owner manager SMEs through to global PLCs - you will be comfortable building rapport, identifying opportunity and closing deals.
Depending on your skills set, client won can be passed to the client service team for ongoing Account Management or retained by the incumbent.
Whilst this is a targeted sales role, our client is aware of the complex nature of the sales process and willing to provide ample time and support to the right individual.
A book of business is also available to inherit.
With strong knowledge of credit insurance, you will demonstrate a strong track record of winning new clients at all levels.
You will have a professional, consultative approach able to offer solid advice to your prospects and clients to secure ongoing business. Whilst leads, marketing and support are provided, you will need the tenacity and drive to make a new business role a success.
If you have the relevant experience or know someone that does please contact us now on 0203 727 2314 or email us at glenn@lawesgroup.co.uk.
Events & Offers
Trade Credit, Bond and Political Risk Insurance Industry Dinner, hosted by Tokio Marine HCC. 9 November 2017, London.
Tokio Marine HCC is honoured to announce that we are hosting this year’s dinner at the De Vere Grand Connaught Rooms. For our inaugural hosting of the dinner, we promise you a memorable evening and would be delighted if you would join us for a glass of bubbles in the Drawing Room, before taking our seats in the Grand Hall for dinner.
An important part of the evening is the opportunity it provides to support some extremely worthwhile causes through the traditional charity raffle and silent auctions. This year Tokio Marine HCC has selected two outstanding charities to receive the benefit of that support – St Mungo’s and LOROS. We are delighted to announce our auctioneer is the TV Presenter and Antiques columnist, Jamie Breese.
After dinner we can all look forward to tales and comedy quips from Miles Jupp, before returning to the Drawing Room to catch up with colleagues and friends from the industry and dancing to the sounds of Groove Instinct.
Don’t miss your opportunity to join us at this special event and book your tickets early. Visit tmhcc.com/ukcredit and follow the link to place your booking.
China Trade & Commodity Finance Conference 2017, 14 November 2017. Shanghai, China.
Following several years in Beijing, GTR returns to Shanghai for a second year to host the China Trade & Commodity Finance Conference 2017, now established as a crucial annual get-together for regional financiers, corporates and trade experts.
Themes to be covered include economic challenges and opportunities in and around the country, and a breakdown of what the future may hold for what is still the world’s leading exporter.
 Offering a first-class business environment, GTR’s conference will save you travel, time and money by providing access to the market’s key players all in one central location.
Click here for more information. A 15% discount is available for readers with code CIN15.
Nordic Region Trade & Export Finance Conference 2017, 16 November 2017. Stockholm.
Marking a decade in Sweden, the Nordic Region Trade & Export Finance Conference returns to Stockholm in November 2017.
Being the only event of its kind in the Nordic region, the conference continues to attract a huge range of international corporates, financiers, regulators, insurers, legal specialists and trade experts, providing a unique forum for those involved in Nordic trade to meet and learn from market peers.
Key drivers for discussion will include the impact of an uncertain geopolitical climate on international trade, as well as key challenges and new opportunities in emerging markets, the future role of technology in trade finance, treasury and working capital optimisation, and financial risk management featuring throughout the course of this focused one-day gathering.
Click here for more information. A 15% discount is available for readers with code CIN15.
Alternative and Receivables Finance Forum 16 November 2017. London.
BCR’s Alternative & Receivables Finance Forum has been tracking the revolution in receivables and invoice finance for the last 4 years. This is a unique gathering, where you can network with established receivables finance providers and ‘alternative’ SME funders and find out how the competitive landscape for commercial finance is changing. The comprehensive programme provides insights into the priorities influencing SMEs’ financial choices and showcases the latest technology-enabled distribution models.  Come to A&RF 2017 to engage in the debate and help define the future of working capital finance.
BCR are delighted to offer Credit Insurance News members a 10% discount on booking. Register now using code CIN17 at www.bcrconferences.com.
TXF Private Insurance - Political Risk and Trade Credit Insurance, 28 November London.
TXF is pleased to bring you its inaugural Political Risk & Trade Credit Insurance conference.
Please join us for a day of educative workshops, collaborative discussions, and insightful presentations.
The private insurance market plays an integral part in the trade and export finance market and is increasingly being seen as a viable alternative to the public ECA market. TXF would like to acknowledge the growing importance of the private insurance market by providing this conference as a platform for the industry to convene, discuss and grow.
To take advantage of your exclusive £250 off offer contact Constantina at Constantina.christophide@txfmedia.com or click here for further information.
Blockchain for SCF Masterclass, 30 January 2018. Frankfurt. 
The Blockchain for SCF Masterclass is an advanced and comprehensive workshop that will review and assess the latest developments in blockchain technology for supply chain finance. 
Presenting both an introduction to blockchain and detailed use cases from the industry, the masterclass will provide attendees with a deeper understanding of how blockchain and distributed ledger technology are impacting the supply chain ecosystem and what this means for your business. 
The masterclass will bring together supply chain finance professionals and industry disruptors in an active discussion of the key opportunities and challenges: 
  • Reviewing latest developments in blockchain and DLT 
  • Using blockchain technology to create value for their customers 
  • Overcoming regulatory and legal constraints 
  • Working towards a standardisation 
  • Collaborating with fintechs to enable DLT 
  • Mitigating the risks of fraud and increasing security 
Held ahead of our Supply Chain Finance Summit in Frankfurt, the Masterclass will provide you with a complete overview of blockchain and equip you with the knowledge to future proof your business. For more information go to https://bcrpub.com/events/blockchain-scf-masterclass.
Supply Chain Finance Summit, 31 January - 1 February 2018. Frankfurt.
The Blockchain Masterclass is an advanced and comprehensive workshop that will review and assess the latest developments in blockchain technology for supply chain finance. Presenting both an introduction to blockchain and detailed use cases from the industry, the masterclass will provide attendees with a deeper understanding of how blockchain and distributed ledger technology are impacting the supply chain ecosystem and what this means for your business. The masterclass will bring together supply chain finance professionals and industry disruptors in an active discussion of the key opportunities and challenges:
  • Reviewing latest developments in blockchain and DLT
  • Using blockchain technology to create value for their customers
  • Overcoming regulatory and legal constraints 
  • Working towards a standardisation 
  • Collaborating with fintechs to enable DLT 
  • Mitigating the risks of fraud and increasing security 
Held ahead of our Supply Chain Finance Summit in Frankfurt, the Blockchain Masterclass will provide you with a complete overview of blockchain and equip you with the knowledge to future proof your business.
BCR are delighted to offer Credit Insurance News members a 10% discount on booking. Register now using code CIN17 at www.bcrconferences.com.
TXF Moscow: Export Finance, 13 March 2018. St Regis Nikolskaya Hotel, Moscow.
TXF is delighted to invite you to join us for this exclusive, capped attendance event.
With focused and informative content, honest discussion of financing trends & opportunities, plus excellent networking opportunities, it is an event not to be missed if you are active in the region. We will be helping Russian borrowers understand the kinds of financing available to them, giving borrowers the chance to explain their needs, as well as providing timely updates on regulation and policy. The perfect meeting point for all stakeholders doing business in Russia.
To take advantage of your exclusive 10% off offer contact Lucy at lucy.morris@txfmedia.com or click here for further information.
About the Sponsor: AIG
AIGTrade+ is a trade credit product which uses technology to combine “ground up” cover with non-cancellable credit limits.

Features & Benefits
AIGTrade+ provides credit limits that are non-cancellable for 12 months. Credit limits are calculated automatically using trading history or set by an AIG underwriter, relieving the client of responsibility for setting discretionary limits and the customer analysis this involves.
AIGTrade+ uses an online platform to analyse how the policyholder’s buyers are performing. It displays an up to date picture of exposure cover, provides stop shipment alerts and ensures policy compliance by removing the need for overdue reporting and turnover declarations.
AIGTrade+ enables a simplified claims process due to pre-approved limits and invoice data being already captured within the IT platform.
To find out more please contact Andrew Baynes on 020 7063 5448 or via email: Andrew.Baynes@aig.com or speak to a member of the UK Trade Credit team.
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