Who says there are no new frontiers in insurance? The economic crisis, coupled with a greater emphasis on exporting, has rekindled interest in an underutilized insurance product which also presents an exciting new opportunity for agents: credit insurance.
Although most companies' largest assets are their accounts receivables—the money owed them by customers—few bother to protect themselves against the risk of customer default or insolvency. Yet for many companies, if just one major customer was to default or go bankrupt, it could spell their own doom. Indeed, the risk of a serious or even ruinous default by a customer is more likely than theft, fire or flood.
Despite this very real peril, only about 1 in 10 American companies buys credit insurance, compared with more than 50 percent of European companies. But since the beginning of the economic crisis, interest in credit insurance has reached an all-time high.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
