COVID-19: A Challenge for the Credit Insurance Industry: Atradius, Coface, Euler Hermes
COVID-19: Trade Credit Insurance Industry
In general, commercial credit insurance often states that “the spread of infectious diseases is exempt.”
Initial predictions were that “this COVID-19 claim” would remain low.
However, corporate bankruptcies are increasing and the global recession is imminent.
As a result, all companies that take out credit insurance are in trouble.
What is credit insurance?
The credit insurance market is $ 11 billion.
Covers “the risk that a company will not be able to collect accounts receivable”.
According to data from the end of last year compiled by the French credit insurance company Euler Hermes, already in 2019, the tendency for corporate bankruptcy to increase was increasing.
Rating Company: Moody’s
The increase in claims for insurance claims
Atradius of the Netherlands,
French Coface,
Euler Hermes
We anticipate that it will hit three major credit insurance companies.
Latent exposure:
15% of potential exposures are in the two regions most affected (Asia and Australia).
Atradius:
The other day, 2020 is expected to increase corporate bankruptcies by 2.4% worldwide, mainly due to the spread of the new coronavirus.
Coface: Xavier Duran (CEO)
The worst impact on analysts recently was Asian hotels and airlines.
Euler Hermes:
Corporate transaction losses from the new coronavirus amount to $ 320 billion per quarter.
Reuters
https://jp.reuters.com/article/health-coronavirus-insurance-investment-idJPKBN21307B