7 tips for choosing a credit insurer

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Evaluate your future credit insurer is not an easy task for you trace the route we will summarize the key points not to omit!
If you need help or further explanation, please call us at Contact credit insurance against the risk of unpaid

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1. The customer coverage quota

Put the credit insurer retained on the test bench and test on a representative sample of your clients (10 clients), in the jargon of credit insurers it is “notice of principles.”

You will get two important data.
1 – Reactivity “response time” of companies.
2 – The acceptance rate.

Information to measure the “objective” perception of the insurer, and measure the quality of your customers, we are often surprised!

2. The quality of information and expertise

This point follows from the previous, in fact the information is a key point in your choice. The more relevant and more updated information will be fair and objective.
Credit insurers all have powerful information networks that feed the “arbitration” departments. Arbitration Company is composed of a referee, broken down by sectors (textiles, transportation, IT, btp ….). Each pole is fed information to make over water decisions.

Notoriety, seniority, structuring its network, expand regionally’s already an indication. Internally the company will also build on its inspection network (which makes investigations), collaboration with the KICs, the registries of TC, banks, commercial information companies, social organizations, the clients network … Supported by a department of economic studies that realizes the “sleep” and publishes economic studies, prospective view of risk French and international markets.

3. The proportion of compensation

This is essential, it is the part that you get in the event of default.

Compare and negotiate the percentages of compensation of unpaid, usually there is a percentage of the debt HT: nominee in 70-90% (credit insurer does not guarantee 100% responsibility for the insured) and referred to as non-50 to 70%.
Compare and negotiate the disbursement limit. It is calculated by applying a multiplier of 20-40 times the Prime Paid Annually. (Generally the MAP 30x Minimum Annual Premium).

4. The time limits for compensation

This is important because it directly affects your working capital (working capital needs).
Usually the waiting period is 3 to 5 months from the submission of the claim in the dossier. (30 days if finding of collective proceedings).

These indemnification times vary between different credit insurance companies. These figures are available in the “Timing” under the column “Delay indemmisation” comparison of the table solutions of credit insurance for TPE.

5. The management tools

IT support that will drive the management of your credit insurance contract.
All credit insurers are fitted with media management “on-line”, the system should allow you to make your questions online, your file handed to sinister department, looking for customers in France and internationally, the currency conversion, extracting files …
According to the companies, ergonomics and services may be very different.

6. The rating of the credit insurer

As banks, credit insurance companies are rated (rating) by rating agencies, this provides information, an assessment of the financial soundness of the credit insurer, the prospects for reimbursement of his face commitments its creditors.
The financial rating is a must in the risk assessment includes an investment, this is necessary in the financial markets to properly identify global information and thus all risk parameters.
Ratings agencies: Moody’s, standatd & Poor’s, Fitch Ratings, Dagong … ..