Non-life insurer Malayan Insurance Co. Inc. has taken on Dutch firm Atradius Credito y Caucion S.A. de Seguros y Reaseguros, a trade credit insurer, as partner.
Malayan Insurance and Atradius hope to increase trade credit insurance utilization by leveraging and maximizing both insurance firms expertise in identifying, managing and alleviating risks, the companies said.
Trade credit insurance, also known as accounts receivable insurance or debtor insurance, safeguards businesses from the risk of client failure to pay for the goods or services they acquire. It covers the sales contract between the insured seller or company and its corresponding buyer and helps policyholders recoup losses or unpaid debts within agreed plan limits.
The insurance is widely used in Europe and the United States to help them manage and mitigate risks.
The International Credit Insurance and Surety Association said the global trade credit insurance market reached a premium volume of $13.89 billion in 2022 alone.
Malayan Insurance president and CEO Paolo Y. Abaya said the collaboration reshapes and expands the local insurance landscape “since it will provide an invaluable safety net to a wide range of medium and large-scale enterprises.”
The Netherlands-based Atradius, is an acknowledged leader in trade credit insurance, surety and debt collection services since 1926. It has presence in over 50 countries worldwide and received a financial strength rating of A (excellent) from AM Best with a stable outlook and a Moody’s rating of A1 with a stable outlook.Atradius N.V. is wholly owned by Grupo Catalana Occidente S.A. and Grupo Compania Espanõla de Crédito y Caución S.L.
