Trade finance insurance solutions

In an increasingly uncertain economic and political climate, businesses face mounting challenges in managing their credit risks and securing favorable trade finance insurance terms. Lenders often require specific coverage terms that traditional trade credit insurance (TCI) policies fail to address, creating a disconnect between insurers and financiers.

Our trade finance insurance solutions act as bridges between corporate credit insurance policies and the needs of lenders. Benefits are shared between banks and companies enabling more efficient risk management and unlocking better financing terms. Our comprehensive offerings are tailored to meet diverse business needs, whether you’re looking to secure a single transaction or an entire portfolio, we provide the coverage you need.

Trade finance insurance solutions

1. Whole turnover policies (ground-up cover)
2. Seller recourse cover policies
3. Credit enhancement / XoL policies
4. Credit rating enhancement policies
5. Mirror policies
6. Top-up policies
7. Parallel policies

Examples of insurable assets

• Account receivables securitizations
• Receivables purchase agreements
• Purchase order financing
• Supply chain finance/reverse factoring
• Letters of credit

Benefits of trade finance insurance solutions

• Reduce risk weighted assets relieving pressure on regulatory capital & enhancing returns.
• Increase lending capacity while complying with internal credit limits in highly concentrated exposures.
• Increase the overall profitability of the financing contract resulting in favorable financing terms for businesses.
• Mitigate credit (protracted default and insolvency) and political risk in cross-border transactions improving the cash flow management and balance sheet stability.
• Strengthen customer relationships supporting international trade.
• Increase the probability of transaction approval by credit committees.
• Optimize risk management by using the tools provided by the insurer to monitor the financial strength and risk profile of the businesses.

Why WTW

Combining our expertise in helping financial institutions with our expertise in trade credit insurance, WTW delivers tailored solutions structured to meet the unique needs of multinationals and their lenders. The team is a globally experienced group of trade credit and trade finance insurance specialists with a background in broking, credit risk analytics and underwriting.

The aim is to deliver more efficient, streamlined, and cost-effective insurance programs for multinational clients, leveraging data and analytics to structure cover in the optimal way. It can help multinationals secure greater value from their trade credit insurance policy enabling more efficient risk management and unlocking better financing terms.