WHAT IS CREDIT INSURANCE?
Credit insurance is a form of casualty insurance which protects manufacturers,
merchants and other suppliers of goods and services against losses that may result from
nonpayment by their customers after granting credit terms (click for definitions)
to domestic or foreign buyers.
It does not cover physical damage to the product.
It is not akin at all to credit life insurance
GOVERNMENT CREDIT INSURANCE
No Domestic Credit Insurance
Boilerplate Policies - Rigid
Politically Approved Countries according to foreign policy
Content requirement for Products
Low Minimum Annual Premiums
Low Discretionary Credit Limits
High % Buyer Underwriting
PRIVATE CREDIT INSURANCE
Countries not politically but economically motivated
No domestic content product requirements
Medium-high minimum annual premiums
High discretionary credit limits
Low % buyer underwriting
CREDIT INSURANCE UNDERWRITERS
Global Trade & Political Risk
Credit Indemnity (ACI)
Bank of the U.S.
Credit Insurance Association (FCIA)
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