Welcome to the January 2023 issue of Credit Insurance News Digest. 
This month's issue is sponsored by Nexus Trade Credit.

Credit Insurance News
Trouble ahead for trade credit insurance. Commercial Risk has reported that although the last couple of years has seen a remarkably benign claims environment for trade credit insurance globally, the outlook for the next year or two is pointing to a difficult time for corporates, with insolvencies and payment delays expected to grow dramatically. Consequently, the trade credit insurance environment is changing, and risk appetite is starting to harden after being soft for longer than expected. According to Frederic Bourgeois, Managing Director at Coface UK and Ireland, although there is still a lot of capacity in the market, this tends to be reserved for existing clients. He added: "Since the summer, the level of activity of new prospects has increased significantly, although many of the requests we receive are very selective and thus need to be declined, however we do quote nearly two-thirds of the enquiries we receive." To read Commercial Risk's article go to https://www.commercialriskonline.com/trouble-ahead-for-trade-credit-insurance/.
Berne Union members brace for "a confluence of negative global events". According to Berne Union Member data published for the first half of 2022, with overall strong demand and a manageable claims situation, trade credit insurers have mostly maintained their risk appetite during 2022, albeit becoming more selective around certain countries or sectors. However, while 2022 will likely be a relatively benign year for private and public trade credit insurers, Berne Union members feel that the outlook for 2023 is bleaker. Many insurers highlighted that they are trying to maintain their current limits, but due to the higher-risk environment this may result in higher premiums in the future, and warn that the industry is bracing itself for the prospect of a confluence of negative global events which have been building over the past three years. The biggest market for short term trade credit insurance is still Europe — which accounts for around half of global cover provided. For more information go to https://www.berneunion.org/Articles/Details/731/2022-Berne-Union-Yearbook-The-Marriage-of-Resilience-and-Efficiency.
Around one-third of companies in Eastern Europe "will be inclined towards credit insurance" in the year ahead. According to the latest edition of the Atradius Payment Practices Barometer, late payments currently affect an average of 43% of all sales to B2B customers across industries polled in Eastern Europe. The research also noted that a deterioration of Days Sales Outstanding was reported by 48% of businesses, with many respondents in the region expressing deep uncertainty about the effects of the ongoing global economic downturn and their ability to set aside enough funds to absorb the hit of a significant write-off that was highly likely to occur in the current unsettled economic and trading environment. Atradius notes that this may be why around one-third of the companies polled in the survey say they "will be inclined towards using credit insurance in the year ahead." To read Atradius' news release go to https://group.atradius.com/publications/payment-practices-barometer/b2b-payment-practices-trends-eastern-europe-2022.html.
The UK economy is set to experience the deepest recession amongst large economies. According to Allianz Trade, the UK economy is forecast to fall into a recession in 2023 before finding a weak recovery of 0.7% in 2024. Allianz Trade predicts that the UK economy will shrink by -0.9% in 2023 — the deepest recession amongst large economies — compared to just -0.3% for the US and -0.4% across the Eurozone. In comparison, global GDP will grow by +1.9%. Furthermore, Allianz Trade notes that, along with Spain, the UK is leading the rebound in business insolvencies in Europe, with insolvencies expected to increase by +51% in 2022 and by +15% in 2023. "The climb in insolvencies is driven by a sharp increase in liquidations, suggesting that businesses which were struggling either before or during pandemic lockdowns have simply chosen to close rather than attempt to restructure or sell," said Maxime Darmet, Senior Economist, France the US and UK, at Allianz Trade. To read Allianz Trade's news release go to https://www.allianz-trade.com/en_GB/insights/economic-research/uk-insolvency-rates-q3-2022-update.html.
Outlook for trade credit insurance in the new year. Trade Finance Global (TFG) has published an interview in which Francoise Huang, Senior Economist for Asia Pacific and Trade at Allianz Trade, John Miller, Chief Economic Analyst at Trade Data Monitor, and Richard Wulff, Executive Director at ICISA, provide their predictions on trade values, commodities performances and discuss what the trade credit insurance environment will look like in 2023 for bank and corporate users. Richard Wulff comments that 2022 was another tumultuous year, resulting in more companies looking for options to mitigate risk and support development. Consequently, there are "clear signs that this is leading to a higher demand for our products", although due to rising insolvencies and claims, insurers will be paying close attention to risk quality. He also notes that the EU is currently carrying out a review to ensure that credit insurance continues to receive appropriate recognition as a vital source of risk mitigation. To read TFG's article go to https://www.tradefinanceglobal.com/posts/trade-volumes-commodity-predictions-2023/.
Allianz Trade, Santander CIB & Two partner to develop a new B2B BNPL solution for large multinational corporates. Allianz Trade, Two (the B2B e-commerce payments platform), and Santander Corporate & Investment Banking, have announced that they have partnered to provide the first global B2B Buy Now Pay Later (BNPL) solution for large multinational corporates. Allianz Trade advises that the solution is a game changer for global online B2B commerce. François Burtin, Global Head of e-commerce at Allianz Trade, commented: "Our solution will be distributed worldwide and aims to allow large corporates to develop their online sales by offering deferred payments to existing and new customers, without being exposed to non-payment risks, while benefiting from immediate and guaranteed payments." Marsh Spain acted as the trade credit insurance broker. To read Allianz Trade's news release go to https://www.allianz-trade.com/en_GB/newsroom/new-b2b-bnpl-partnership.html.
Top credit insurer reduces cover for THG suppliers. Retail Gazette has reported that, according to a recent article in The Guardian, Allianz Trade has trimmed back insurance cover for suppliers to THG in recent weeks. According to the article, it is understood that Allianz informed the group's suppliers of its decision although, alongside other insurers, it continues to provide cover for them. Sources close to THG, which owns brands including Lookfantastic, Glossybox and Cult Beauty, said the reduction in cover was "small" compared with its overall level of credit insurance and has no bearing on THG’s financial position. To read Retail Gazette's article go to https://www.retailgazette.co.uk/blog/2022/12/credit-insurer-slashes-cover-thg/.
Credendo reports increased use of trade credit insurance services. Credendo's latest Export Barometer for 2022 has found that Belgian businesses reported receiving even more export support in 2022, with only 36% (down from 45%) of businesses reporting that they had received no support. According to Credendo, although businesses' main partners continue to be banks (29%) and regional export agencies (18%), there has also been a pronounced upswing for trade credit insurers (to a record 13%), "a sign that the return of political risk is leading to an upturn in the use of their [credit insurers'] services." As a corollary, the proportion of businesses not covering their risks of non-payment fell to 17%, the lowest since the Barometer began. Although 100% advance payment remains the most commonly cited protection, trade credit insurance is mentioned by one in four businesses which earn at least 25% of their turnover from exports. To read Credendo's Export Barometer go to https://credendo.com/en/knowledge-hub/results-2022-export-barometer.
Trade credit insurance market to polarise. Law firm Clyde & Co has published an article which suggests that a series of high-profile commodity-trade fraud cases, trading company collapses and supply chain finance controversy, coupled with a scaling back of working capital support from trade finance providers, has resulted in a more considered approach to trade credit insurance over the past 12-18 months. It notes that cautiousness has intensified against a backdrop of economic uncertainty and supply chain disruption, and, in the year ahead, it expects to see a polarisation of the trade credit insurance market as some underwriters continue to withdraw from writing trade-related risks instead preferring corporate loans and non-trade-related payment default risks. For others, this represents opportunity; those underwriters that continue to write commodity business will exhibit a 'flight-to-quality' approach. To read Clyde & Co's article go to https://www.clydeco.com/en/insights/2023/01/trade-credit-market-to-polarise.
An unprecedented mix of challenges is bringing the global economy to the brink of recession. Atradius' latest Economic Outlook expects global GDP growth to decrease to 1.2% in 2023, down from 2.9% in 2022 and anticipates that several key advanced markets — the US, the UK and the eurozone — will fall into recession in 2023. In the Eurozone, GDP growth is predicted to contract by 0.1% in 2023 after a 3.1% increase in 2022. The UK is expected to see a 0.7% economic contraction in 2023, followed by a modest 1.8% rebound in 2024. In the US, after a 1.8% growth rate in 2022, Atradius expects a 0.4% contraction in 2023. However, Atradius also warns that further energy price shocks, next to a vicious wage-price spiral in advanced economies, would lead to a deeper global recession. In such a scenario, Atradius expects global growth to halve in 2023 (to 0.6%) and warns that this would shave 2.3% off GDP in the US and 1.5% in the eurozone in 2023. To read Atradius' Economic Outlook go to https://group.atradius.com/publications/economic-research/economic-outlook-december-2022.html.
Global growth: Still heading towards a recession. In its latest Economic Outlook 23-24, Allianz Trade anticipates that global GDP growth will slow to +1.4% in 2023 (from +2.9% in 2022), before recovering modestly to +2.8% in 2024. However, there will be significant divergence across countries, with advanced economies registering a shallow recession of -0.1% in 2023 (after growth of +2.5% in 2022), followed by a rebound to below-potential growth of +1.5% in 2024. In contrast, growth in emerging markets is expected to remain stable in 2023 at +3.3% (mainly supported by the cautious reopening of China), with a rebound to +4.3% growth expected in 2024. In 2023, Allianz also expects global trade in goods and services to grow by only +0.7% in volume terms and contract by -1.3% in value terms (to USD 29.5 trillion). However, a mild recovery should be possible in 2024. To read Allianz Trade's report go to https://www.allianz-trade.com/content/dam/onemarketing/aztrade/allianz-trade_com/en_gl/erd/publications/pdf/2022_12_15_Economic-Outlook.pdf.
Coface introduces URBA 360, its new online risk management tool. Coface advises that URBA provides an easy-to-understand graphic picture of a company's risk. From the dashboard, users can instantly see the vital statistics for a trading partner and then drill down to the finer details, including 26 different financial ratios and relevant macro-economic analysis. Features include: a clear colour code to identify the status of five key indicators; the maximum individual amount outstanding recommended by Coface underwriting; an analysis of trends in the sector of activity on a 4-level risk scale (low, medium, high, very high); quantification of the relative strength of a country's fundamentals and its vulnerability to shocks, as measured by companies non-payments; a score from 0 to 10, to represent the probability, over a 12-month period, that a company will be able to meet its financial commitments. For more information go to https://cofaceitfirst.co.uk/cofaces-early-warning-system/.
ICISA launches a series of monthly webinars aimed at tackling topics and challenges of the trade credit and surety industries. ICISA has announced that it will launch a series of 60-minute webinars on the last Tuesday of every month (starting on Tuesday, 31 January) to discuss topics and challenges faced by the trade credit and surety industries. Readers are recommended to attend the live event, although each session will be recorded and published on ICISA's Youtube channel for later viewing.
Currently, the webinars planned for 2023 are as follows: 
  • January: Underwriting in times of inflation: Experiences in Latam & Africa (TCI) 
  • February: Insurance of substandard risk 
  • March: underwriting in times of inflation (Surety) 
  • April: Blockchain 
  • May: Banking Regulation 
  • June: State of the industry 
  • July: worldwide surety distribution 
  • September: AI 
  • October: Recovery procedures and possibilities — case study 
  • November: Digitalisation in Surety 
Some webinars will be members-only, while others will be open to the public.
If you have ideas for other topics or would like to be involved in one of the webinars, please get in touch with ICISA's secretariat at secretariat@icisa.org.
Podcast: Trade credit insurance and e-commerce. The London Institute of Banking & Finance has published a podcast in which James Cook, Assistant Director at BPL Global, Jonny Carruthers, Director at BPL Global, and Ozlem Ozuner, Head of Operations & Finance at Allianz Trade, provide a background and history of trade credit insurance, discuss technological advancements and embedded finance, delve into e-commerce innovations, and look forward to the future. To listen to the podcast go to https://open.spotify.com/episode/1Kc9znxTDZjqA4nVx11KLR?si=5da3b60b7c6146d6&nd=1.
Podcast: The importance of trade credit insurance and how business owners can approach it in a clear and structured way. Adrian Jones, Head of UK and Europe at Markel International and Senior Underwriter of Trade Credit, Political Risk and Surety, and Martyn Locke, Account Manager at Xenia Broking Group, recently took part in a podcast hosted by the Marine Fuels Alliance which discusses the importance of on-boarding and approaching trade credit in a professional and structured way and the impact of having no or insufficient trade credit insurance. To listen to the podcast go to https://www.marinefuelsalliance.com/2022/12/22/the-mfa-podcast-ep-2-trade-credit-insurance/.
Q&A with Xenia's Business Development Executive, Joe Nelson. Xenia Broking Group has published a Q&A in which Xenia's Business Development Executive, Joe Nelson, talks about the social side of working in Xenia's new business team, the most commonly asked question in his job role and how he would answer it, as well as how got into the insurance sector. Joe notes that the trade credit insurance industry is very varied and many of his friends and family are amazed at the amount of networking, meals and events he goes to. As such, his advice for a young person considering a career in credit insurance is, "If you're a social person, it's a great industry to be in." To read Xenia's Q&A go to https://xeniabroking.com/news-and-insights/how-xenia-maintains-its-culture-as-it-expands-a-q-a-with-business-development-executive-joe-nelson.
Credendo downgrades eight countries as political instability bites. Commercial Risk has reported that Credendo has downgraded eight countries: Bangladesh, Bhutan, Burkina Faso, Djibouti, El Salvador, Haiti, Mongolia and Uganda. The insurer said that, since its outbreak, the war in Ukraine has "sharply harmed" Bangladesh's liquidity, particularly through high commodity prices, while Haiti is on a "slippery slope" towards becoming a failed state. Credendo also said that Uganda's short-term external debt had already been increasing significantly for several years and has now shown a further jump. To read Commercial Risk's article go to https://www.commercialriskonline.com/credendo-downgrades-eight-countries-as-political-instability-bites/.
Mark Brincat, Director of International Sales, Aon Trade Credit, who has just passed his 25th anniversary with Aon.
New Appointments
Allianz Trade has announced two new appointments:
  • Maxim Ryzhkov becomes CEO of Allianz Trade in China. Prior to this appointment, he was Commercial Director for Allianz Trade in the Nordics.  
  • Steven Stennett as its Commercial Director of Allianz Trade UK & Ireland. Steven joins Allianz Trade from Coface, where he was Head of Regional Sales - Western Europe.  
  • Marco Antonelli becomes Global Head of People Development. Marco was previously Director Human Resources, Mediterranean Countries, Africa and Middle East Region (MMEA) at Allianz Trade.
Atradius has promoted Katie Griffiths to the position of Marketing Manager at Atradius' headquarters in Cardiff. Katie joined Atradius in August 2022 as a Marketing Executive.
Attis Credit Solutions has announced that Rachael Hodson has joined its new office in Leeds. Rachael joins us from Xenia / Credit Risk Solutions, where she has focused on new business development since 2009.
Coface has announced several new appointments:  
  • Cecilia Colodro becomes Coface's Head of Financial Institutions UK and Ireland from 1st January 2023. Cecilia has worked for Coface for four years in various Group and Regional roles, most recently as Head of Commercial Underwriting for Coface's Western European Region.  
  • Stuart Lemin will move into a Group position as Global Head of Business Development for Financial Institutions from 1st March 2023. Stuart was previously Head of Financial Institutions UK and Ireland.  
  • Millie Skinner has been appointed as a New Business Manager at Coface. Millie joins from Atradius UK, where she was Senior Business Development Manager.
  • Ben Handley has become coface's Head of Account Management for CGS UK and Ireland. Ben joined from Allianz Trade where he was most recently Regional Distribution Director, Asia Pacific.
Credendo has appointed Jakub Lawicki as an Underwriter. Jakub is also completing an MSc in Economics at WU (Vienna University of Economics and Business). He is based in Vienna.
CRiON has promoted Sven Cortoos to the position of Senior Advisor Trade Credit. Sven has been with CRiON for more than fourteen years, most recently as Senior Business Manager Trade Credit. He is based in Ghent.
SACE has promoted Valerio Perinelli to Chief Business Officer, Valerio has been with SACE for nearly six years, and was previously Chief Business Officer. Prior to that, Valerio was Chief Executive Officer at Euler Hermes UK & Ireland. He is based in Rome.
Tokio Marine HCC has announced that Terry Macauley, Senior Risk Officer – Credit, has been promoted to Deputy Head of Risk – Credit. Nick Walklett, Head of Risk, commented: "This change will enhance the Management team and give Terry more ability to focus on operational matters, having spent notable time developing systems and processes during the previous two years." Terry has over 15 years of experience in the credit insurance market.
Career Opportunities
The vacancies below reflect Credit Insurance News Job Board on 14 December 2022.  Click here to see Credit Insurance News' current Job Board.
Credit and Political Risk Underwriter
 (Geneva, hybrid)
We currently have a vacant position in our Single Risk Team, for a Credit and Political Risk Underwriter.
The Single Risk Team is dedicated to customized, individual credit insurance solutions for corporates, financial institutions and traders. The position is based in Geneva and will involve occasional travel (international).

Key responsibilities 
  • Credit Analysis
    You will analyse and assess a wide range of credit related and political risks of international financial and commercial transactions. 
  • Review of business opportunities
    You will evaluate and review business opportunities originated through specialized political and credit risk brokers. >
  • Preparation of Insurance Proposals
    Prepare, present and defend files to the various credit committees following internal guidelines. 
  • Negotiation, Issuance and Monitoring of Policies
    You will negotiate and issue insurance policies and monitor these policies and their underlying risks (collection, analysis and assessment of new information).
  • Underwriting Administration
    You will ensure the proper administration of insurance policies in accordance with internal and external rules and regulations, in close collaboration with our middle & back office team.
  • Develop Broker and Client Relationships
    You will develop international relations with brokers and clients to detect new business opportunities and foster our business relationship
  • Support Underwriting Strategy
    You will support the Underwriting Team in developing its strategy concerning risk portfolio and clients acquisition
Your profile
  • You have a Master’s degree in Economics, Finance, Law or similar
  • You have 3+ year-experience in credit insurance, banking industry or the credit department of an international corporate
  • You are fluent in English and French
  • You are interested in Finance, International Economics, Geopolitics and the Insurance Industry
  • You have strong analytical skills
  • You have good interpersonal skills and are client oriented
  • You are a well-organized person with a particular focus on quality
  • You are stress resistant and able to work both in a team and on your own
  • You have a good command of MS Office (Excel, Word, Power Point)
Our offer
  • You will work in an international and dynamic environment
  • As a highly specialized company we offer a position that provides a comprehensive insight into our business
  • Hybrid working (work up to 2 days a week from home)
  • We offer an attractive salary supplemented by fringe benefits
  • Our office is located in Geneva City Centre, easily accessible by public transportation,
About Us
Credendo – Guarantees & Speciality Risks (Credendo GSR) is an insurance company specialized in trade credit and political risk insurance with a strong focus on risks in emerging markets. We protect companies, banks and traders against credit and political risks, and facilitate the financing of such transactions. Through our head office in Belgium and nine branches across Europe, we offer surety in Europe and excess-of-loss, top-up and single risk credit insurance solutions in over 160 countries. 
As a subsidiary of the Belgian Export Credit Agency “Credendo ECA”, we enjoy a strong and stable shareholder base. Credendo Group, Europe’s fourth largest credit insurer, is a prominent provider of customized credit insurance solutions.
Credendo GSR is rated A- with a stable outlook by S&P’s and has a EUR 135 million capitalization as of 12/21. As a company active in the service industry, the success of our organization stands with the quality of our employees. The development of talents built on mutual respect and trust is our key approach to Human Resources.

To apply
Interested? Please send your CV and covering letter to Kerlijne Van Steen, K.VanSteen@credendo.com.
Events & Professional Development
The Essence of Credit Risk Workshop, 18 January 2023. London
The Co-pilot team, with Event Partners AICDP, SHS Viveon and Coface, will be holding a workshop, 'The Essence of Credit Management' in London on the 18th January 2023 at 2.30pm at The Eight Club, Moorgate.
Topics Include:
  • Welcome and introductions
  • Case study — The Fall of Debenhams, What Were the Warning Signs?  
  • Discussion — Tales from the Shop Floor 
  • How does a Credit Risk Manager at the top of their game operate? 
  • The very real new challenges on the horizon — how does the Credit Risk Manager meet them (we have a lot to share on this topic).
The event finishes at 5pm. Afterwards there are Drinks and Canapés in the Lounge. This normally involves animated discussion and good networking.
Book your free ticket at https://www.eventbrite.co.uk/e/essence-of-credit-risk-event-tickets-463607912747.
If you would like to know more, please call Simon on +44 7785 990588 or email simon.marshall@co-pilot.co.uk.
9th Annual Supply Chain Finance Summit, 24-25 January 2023. Madrid.
Growth in supply chain finance has been ongoing for over a decade with the pace accelerating in the past two years and showing no sign of slowing. With ESG, digitalisation and blockchain, the industry is now ushering a new stage of development. These developments are poised to aid reduction of the USD1.7tn trade finance gap, now at an all-time high. In the coming years supply chain finance will be a focus of growth for not only major global banks but also for those in emerging markets.
We are delighted to join our media-partners @BCR and @FCI for the 9th Annual Supply Chain Finance Summit on 24-25th January in Madrid to hear from industry experts to discuss the challenges of creating resilient, sustainable and harmonised payables finance solutions, which form the basis of the future of supply chain financing.
To register for an Early Bird discount please follow: https://bcrpub.com/events/9th-annual-supply-chain-finance-summit.
Credit Insurance News readers can get 20% discount with code: MEDIA-20.
How To Guard Against Financial Risk in 2023, 25 January. Online.
Company Watch is running a free online webinar on Wednesday, January 25th: 'How To Guard Against Financial Risk in 2023'. 
  For those of us who manage financial risk, 2023 promises to be another tumultuous year. Join former Small Business Commissioner, Philip King, and Company Watch CEO, Craig Evans, to learn how to navigate the stormy waters that lie ahead in 2023 and gain valuable insights from two financial risk experts.
Company Watch is a credit reference agency and financial analytics specialist, leading the way with cutting-edge, innovative tools that help you manage your exposure to financial risk. 
STECIS, the Trade Credit Insurance & Surety Academy endorsed by ICISA, offers a range of webinars and classroom training courses.
Classroom training courses are organised once or twice per year or on demand while webinars are organised multiple times per year or on demand for groups of participants. February next the Surety classroom training courses are guaranteed to take place on the following dates.
  • 14 & 15 February 2023: Surety Foundation Course 
  • 16 & 17 February 2023: Surety Advanced Course
Registrations can be made until the end of January 2023.
All classroom courses will take place in the Steigenberger Airport hotel close to Schiphol Airport/Amsterdam the Netherlands. The courses include the lunches and a dinner at the end of the first training day.
The courses are hosted by very experienced experts from the industry and there is enough opportunity for asking questions, discussions and networking.
Also there is the possibility to arrange an inhouse training: then there will be created a tailor made outline for your staff on basis the training demand of your of your company. The training will be effected at your own offices or at a venue of choice.
Details information about the webinar and classroom training courses are available on the Stecis’ website: www.stecis.org also further information can be obtained by sending an e-mail to info@stecis.org.
About this month's sponsor: Nexus Trade Credit
Nexus Trade Credit protects businesses against losses from non-payment of a commercial trade debt. Our clients range from manufacturers, subcontractors and service providers to importers and exporters. We aim to provide certainty of coverage to enable our clients to trade confidently at home or overseas. Whether you are new to trade credit insurance or a long-standing client, we go the extra mile to support your growth and provide peace of mind.
Our team of specialists offer a variety of structures to suit the risk appetite and needs of the client. We also offer a range of enhanced coverage including, for example, applications by sub-contractors, pre-delivery costs incurred by manufacturers and timesheets used by labour providers.
We currently operate from offices in the UK, Germany, Netherlands, France, and the USA — specialising in Whole Turnover, Non-Cancellable Cover, and, offer cover on a Top-Up and Key Buyer basis. We closely work with our clients and ensure that they always have direct access to the decision maker on their policy.
In addition, we provide products that enhance companies’ credit management including First Limit, a service offering real-time credit opinions and 24/7 monitoring and First Place, a highly regarded debt collection service in partnership with STA International which is reinforced by further policy enhancements.
To contact us, or, to find out more information about our services, visit our website: www.nexusunderwriting.com/en-gb/products/trade-credit-insurance.
Copyright ©2023 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.

Terms and Conditions                         Privacy and Cookie Policy                    © 2023 Credit Insurance News