Credit Insurance: find out why turn to an expert broker

Why choose to work with a monoline broker, that is, specialized exclusively in Credit Insurance ? Commercial

Insurance brokers are just not trained enough to properly handle credit risks. A specialist insurance broker also has expertise in finance, banking, capital markets, credit insurance , surety bonds , among other issues in the financial sector.

That's why it's worth paying attention to three important aspects to consider when choosing a broker specializing in commercial credit insurance. Are they:

Price

When you buy insurance, you buy a “promise” of protection for eventual and unknown losses. Losses in the credit area can represent considerable amounts of money, often with catastrophic consequences, which can threaten an organization's survival. Bad debts are one of the leading causes of bankruptcy across the world.

Brokers specialized in niche markets usually dedicate time and resources to daily guarantee the quality of their services. They tend to dedicate, on average, more than 80% of their time to customer service and less than 20% to investing in new customers and sales, therefore, the customer receives, through an equivalent price, a top quality service.

A typical broker in the Credit segment ensures that its clients are served by the following human resources:

• a senior partner responsible for the account;
• a senior account executive;
• a junior account executive;
• an internal technical support department focused on the quality and auditing of insurance policies issued by the insurer;
• a credit reporting department to defend credit limits refused by insurers;
• a department specializing in credit claims.

Services Offered

Credit claims are not similar to typical property and casualty claims because Credit Insurance is a very complex type of insurance that requires focused attention from specialist professionals with a proven track record in obtaining payments for credit insurance claims. A history with the number of complaints and amounts paid represents an important “thermometer” of the broker's success story. Such numbers must be provided.

Credit insurance normally requires a significant investment in insurance premiums, therefore, it requires the broker to provide a high level of service. In this sense, niche brokers have specific credit software and “best practices” related to credit, which improve customer service.

In addition, niche brokers have in-house resources to not rely solely on insurers' resources. The broker must be able to question all decisions of insurers, and defend the client's point of view on Credit Limits, Texts and Interpretations of Policies, as well as having a deep knowledge of commercial credit markets, “market intelligence”, and which products and services are available in the markets for their customers.

Trusted consultancy

The broker must act as the client's "Trusted Advisor", that is, be their trusted advisor, after all, the client must have a brokerage that can offer a team approach, which puts the most talented professionals at their disposal. .

In addition to team members, clients should be able to count on at least two high-level executives who can act as “leaders” of the account, so that they can be contacted immediately when needed. Phone calls and emails must be answered on the same day.

These professionals have knowledge of the Clients' business sectors, General Accounting, Finance and Commercial Finance, as well as Credit Insurance and Insurance in General. Such qualifications are not easily found in “generic” brokerages (of all branches).

There is no doubt that the world is changing and that we are facing a real revolution in business, especially as a result of the introduction of “Artificial Intelligence”, and the specialized broker must adapt quickly in order to introduce these new technologies in the customer service procedures to improve operational efficiencies and overall service quality.

Phillip Krinker has been in the insurance industry for 40 years and is currently Executive Director and President of CredRisk Seguros. CredRisk Seguros is a monoline brokerage specializing in commercial credit insurance.