Commercial-Lines Damage Insurance Brokers - "The Credit Insurance Specialists"
Wednesday, 30 July 2014
Wednesday, 23 July 2014
New Chairman Assesses RIAC's First Year
Receivables Insurance Association of Canada’s new Chairman points to membership growth, expanding brand recognition, fall economics conference as evidence of progress
Toronto, ON – Brad Hébert, the newly appointed Chairman of the Receivables Insurance Association of Canada,
believes the association’s first year of operations laid a successful
foundation. Now the association intends to expand membership, increase
brand recognition, continue liaison with the Office of the
Superintendent of Financial Institutions, and introduce more value-added
member networking and professional development opportunities.
The Receivables Insurance Association of Canada promotes the business opportunity for receivables insurance – also known as trade credit insurance – to Canadian insurance brokers, the banking industry and businesses engaged in domestic trade and exporting.
Hébert, who is also Vice President – Trade Credit, of AIG Insurance Company of Canada, said the receivables insurance industry has single-digit market penetration among Canadian businesses and premiums across the country experienced a modest year-over-year increase of 2.7% in the first quarter of 2014, according to data from the Office of the Superintendent of Financial Institutions.
Yet the International Chamber of Commerce (ICC) Trade Register Report 2014 provides empirical evidence that, in all forms, trade and export finance is a low risk bank financing technique. Based on data contributed by the major global commercial banks and reflecting more than 4.5 million transactions totaling an exposure in excess of US$2.4 trillion, the ICC Trade Register Report 2014 (“the Trade Register”) empirically demonstrates that trade finance is lower risk than many other types of financing and assets. It records that short-term trade finance customer default rates range from a low of 0.033% to a high of 0.241%, which is a fraction of the 1.38% default rate reported by Moody’s for all corporate products (according to 2012 figures).
“These important findings from ICC motivate our association work with brokers, bankers and businesses to transform the vastly under-insured state of corporate receivables in Canada. The lack of receivables insurance introduces undue risk on working capital loans, inhibits the amount that can be loaned, and also forces higher interest rates on business clients that artificially restrict sales growth,” said Hébert.
In much the same way mortgage insurance is designed to protect the bank in the event of a foreclosure, receivables insurance protects businesses from buyers — in Canada or abroad — that are unable to fulfill their invoice payment obligations.
Such unforeseen trade disruptions can include buyer insolvency, protracted default – a failure to meet obligations on time due to inadequate cash flow, or political disruptions that lead to a loss on current receivables.
“Last year we launched the Receivables Insurance Association of Canada with most of Canada’s major receivables insurance underwriters, several brokers, as well as a major bank,” said Mark Attley, the association’s President. “Our stated goal was and is to grow a $200 million market to a goal of $350 million within five years. All our founding members remain with us into our second year, and I’m pleased to say we also welcomed new members from right across Canada including Gerald Shtull & Associates, Dan Lawrie Insurance Brokers Ltd. and several individuals from trade credit and political risk companies.” Attley pointed out that individual association memberships now start at an affordable $200 per person.
In its second year, the Receivables Insurance Association of Canada is undertaking the following initiatives to bring even more value and networking opportunity to its members:
About the Receivables Insurance Association of Canada
The Receivables Insurance Association of Canada promotes the business opportunity for receivables insurance – also known as trade credit insurance – to Canadian insurance brokers, the banking industry and businesses engaged in domestic trade and exporting. The association also works to advance industry innovation and product integrity, solve any business problems related to government legislation, and represent the interests of its members by facilitating an open exchange of information and ideas. Founding members of the Receivables Insurance Association of Canada include AIG Insurance Company of Canada, AON, Atradius Credit Insurance N.V., Coface, Euler Hermes Canada, Export Development Canada, Guarantee Company of North America, Marsh Canada Ltd., Millennium CreditRisk Management Ltd., and Red Rock Insurance Services Ltd. New members within the last year include Gerald Shtull & Associates, Dan Lawrie Insurance Brokers Ltd. and several individuals from brokerages and professional services firms across Canada.
Receivables Insurance Association of Canada Contacts
Phone: +1 416-596-3013
Brad Hébert, Chairman
Email: brad.hebert@aig.com
Mark Attley, President
Phone: +1 613-794-6683
Email: mark.attley@receivablesinsurancecanada.com
The Receivables Insurance Association of Canada promotes the business opportunity for receivables insurance – also known as trade credit insurance – to Canadian insurance brokers, the banking industry and businesses engaged in domestic trade and exporting.
Hébert, who is also Vice President – Trade Credit, of AIG Insurance Company of Canada, said the receivables insurance industry has single-digit market penetration among Canadian businesses and premiums across the country experienced a modest year-over-year increase of 2.7% in the first quarter of 2014, according to data from the Office of the Superintendent of Financial Institutions.
Yet the International Chamber of Commerce (ICC) Trade Register Report 2014 provides empirical evidence that, in all forms, trade and export finance is a low risk bank financing technique. Based on data contributed by the major global commercial banks and reflecting more than 4.5 million transactions totaling an exposure in excess of US$2.4 trillion, the ICC Trade Register Report 2014 (“the Trade Register”) empirically demonstrates that trade finance is lower risk than many other types of financing and assets. It records that short-term trade finance customer default rates range from a low of 0.033% to a high of 0.241%, which is a fraction of the 1.38% default rate reported by Moody’s for all corporate products (according to 2012 figures).
“These important findings from ICC motivate our association work with brokers, bankers and businesses to transform the vastly under-insured state of corporate receivables in Canada. The lack of receivables insurance introduces undue risk on working capital loans, inhibits the amount that can be loaned, and also forces higher interest rates on business clients that artificially restrict sales growth,” said Hébert.
In much the same way mortgage insurance is designed to protect the bank in the event of a foreclosure, receivables insurance protects businesses from buyers — in Canada or abroad — that are unable to fulfill their invoice payment obligations.
Such unforeseen trade disruptions can include buyer insolvency, protracted default – a failure to meet obligations on time due to inadequate cash flow, or political disruptions that lead to a loss on current receivables.
“Last year we launched the Receivables Insurance Association of Canada with most of Canada’s major receivables insurance underwriters, several brokers, as well as a major bank,” said Mark Attley, the association’s President. “Our stated goal was and is to grow a $200 million market to a goal of $350 million within five years. All our founding members remain with us into our second year, and I’m pleased to say we also welcomed new members from right across Canada including Gerald Shtull & Associates, Dan Lawrie Insurance Brokers Ltd. and several individuals from trade credit and political risk companies.” Attley pointed out that individual association memberships now start at an affordable $200 per person.
In its second year, the Receivables Insurance Association of Canada is undertaking the following initiatives to bring even more value and networking opportunity to its members:
-
-
Grow membership along four industry and individual tiers and seek
member knowledge contributions in the form of white papers, webinars and
professional education/upgrading programs.
-
Introduce an annual learning conference in Canada’s financial centre
of Toronto that invites top economists to discuss issues affecting trade
credit, political risk, exporting and the role of receivables
insurance.
-
Encourage working committees in banking and finance, marketing,
governance and membership to be proactive within the broader Canadian
economy.
-
Continue working with the Office of the Superintendent of Financial
Institutions (OSFI) that now allows banks to introduce the concept of
receivables insurance to clients and direct business borrowers to www.receivablesinsurancecanada.com for more information.
-
Build on public relations and public speaking initiatives that last
year resulted in 47 media stories in insurance industry and general
business publications and blogs both across Canada and around the world.
-
Grow membership along four industry and individual tiers and seek
member knowledge contributions in the form of white papers, webinars and
professional education/upgrading programs.
About the Receivables Insurance Association of Canada
The Receivables Insurance Association of Canada promotes the business opportunity for receivables insurance – also known as trade credit insurance – to Canadian insurance brokers, the banking industry and businesses engaged in domestic trade and exporting. The association also works to advance industry innovation and product integrity, solve any business problems related to government legislation, and represent the interests of its members by facilitating an open exchange of information and ideas. Founding members of the Receivables Insurance Association of Canada include AIG Insurance Company of Canada, AON, Atradius Credit Insurance N.V., Coface, Euler Hermes Canada, Export Development Canada, Guarantee Company of North America, Marsh Canada Ltd., Millennium CreditRisk Management Ltd., and Red Rock Insurance Services Ltd. New members within the last year include Gerald Shtull & Associates, Dan Lawrie Insurance Brokers Ltd. and several individuals from brokerages and professional services firms across Canada.
Receivables Insurance Association of Canada Contacts
Phone: +1 416-596-3013
Brad Hébert, Chairman
Email: brad.hebert@aig.com
Mark Attley, President
Phone: +1 613-794-6683
Email: mark.attley@receivablesinsurancecanada.com
Paul Brent, Senior Communications Strategist, market2world communications inc.
Phone: +1 613-256-3939
Email: paul@market2world.com
Phone: +1 613-256-3939
Email: paul@market2world.com
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