Hundreds of millions of dollars in losses may not be the first thought that comes to mind when discussing Trade Credit Risk coverage, but an executive with the Zurich says that is what the global financial crisis cost the insurer over the past five years.
Speaking during a Webinar presentation last week by insurance broker Marsh titled, Doing Business in Distressed and Emerging Economies, Anne Marie Thurber, executive vice president and managing director, credit and political risk for Zurich, said the company has paid over $600 million in trade-credit claims since 2008 as a result of the financial crisis. She said honoring those claims proved the company's value to its clients. She added that the company went beyond just paying claims.
One example she offered was a manufacturer that filed Chapter 11 bankruptcy leaving the supplier with a claim on its accounts receivables. Zurich paid the seller's claim, but took the additional step of working with the bankruptcy judge to maximize recoveries for both insured and uninsured exposures.
During the financial crisis, Zurich supported customers by taking on more risk, but carefully underwriting those additional exposures, she said.
“We were there when our customers needed us the most,” said Thurber.
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