Bank Non-Payment Insurance

We work closely with some of the world’s leading financial institutions in the structuring of comprehensive Non-Payment Insurance (NPI), protecting them against financial loss, balancing their portfolios and managing their capital requirements.

The impact of non-payment insurance on a banks capital

In this example an NPI policy reduces the amount of regulatory capital the bank needs to hold by 60%. This is $6.3m of capital that can be redeployed elsewhere.

This is an illustrative example of how insurance helps to reduce regulatory capital based on the client retaining $25 million. In this example an NPI policy reduces the amount of regulatory capital the bank needs to hold by 60%. This is $6.3 million of capital that can be redeployed elsewhere.

Benefits of non-payment insurance

Manage exposures across countries, sectors and obligors

Provides increased lending capacity while complying with internal credit limits

Reduce risk weighted assets relieving pressure on regulatory capital and enhancing returns

Improves the predictability of revenue streams from the loan portfolio

Support distribution or hold strategies

Balance sheet protection – extremely effective risk management tool

Discreet client management tool, allowing proprietary information to be kept in-house

Increase the probability of transaction approval by credit committees

Examples of insurable transactions

• Term loan facilities
• Revolving credit facilities
• Trade and commodity finance
• Project finance/infrastructure
• Pre export finance facilities
• Asset backed finance
• Supply chain finance
• Subscription finance
• Derivative counterparty credit risk

Why WTW

Our team have been delivering time tested solutions to our clients for 40 years. We have over 200 dedicated staff across 24 countries to support clients with transactional risks globally, providing innovative and comprehensive solutions.

We specialize in providing credit and political risk insurance to financial institutions operating around the globe. We will invest the time to understand client's business in order to provide bespoke solutions to mitigate these risks.

Innovation

We have a reputation for innovation and continue to adapt our products to meet the needs of our clients.

Experience

The expertise of our team distinguishes us. We recognize the power of thinking differently, that's why our people come from many different professional backgrounds.

Global

We work as one global team, giving you real-time access to more than 60 insurance markets operating globally.

Claims

We have a dedicated claims team available to help you when a loss occurs and have successfully collected more than $1 billion in credit and political risk claims globally since 2008.^*

^*Source: WTW Global Claims database — WTW Credit & Political Risk notified losses from 1 Jan 2008 to 30th January 2025.