The Trade Credit division of AIG Insurance Company of Canada (AIG Canada) provides protection for businesses against loss due to a customer’s non-payment for goods sold or services provided, that are on credit or payment terms. Companies offering payment terms are exposed to multiple economic and geopolitical cycles that exposes them to the risk of non-payment due to customer insolvency, protracted default, and political events. With over 32 years placing trade credit risks in Canada, AIG Trade Credit has paid over $2.5 billion in claims globally.
What is Trade Credit/Accounts Receivable Insurance?
Accounts Receivable insurance provides sellers with the accounts receivable protection needed to safeguard themselves against a customer default due to financial or political events.
Why does your business need Trade Credit/Accounts Receivable Insurance Coverage?
- Your company can potentially increase sales (and profits) by raising credit limits for major customers.
- You can increase sales in existing markets by moving customers from letters of credit to open account terms.
- Your company can potentially attain more attractive bank financing and increase the working capital available from its bank from the same pool of receivables.
- Your company can extend the credit limit of an existing customer in another country.
What Does Trade Credit/Accounts Receivable Cover?
Accounts Receivable insurance helps protect the goods sold or services provided on credit terms from non-payment by a customer due to insolvency, protracted default, and political risks.
- Comprehensive Domestic and Export Credit Insurance - Domestic, foreign or global accounts receivable protection is provided for any loss arising from buyer payment default due to insolvency, protracted default or the failure of the exchange authority in the buyer’s country to transfer foreign currency.
- Multinational Credit Insurance Programs - Global accounts receivable insurance with local policy issuance for foreign subsidiaries wrapped by a Controlled Master Program (CMP) provides integrated coverage for insolvency, protracted default and currency transfer risk on your global accounts receivable asset.
- Top-Buyer/Single-Buyer Policy - Accounts receivable coverage for your top/key customer(s) domestically or globally, whether it’s for the whole company or a subsidiary/division, can be provided under our DECI policy form.
- Trade Finance Insurance - A full menu of trade credit insurance options is available for financial institutions engaged in financing of domestic and/or foreign trade receivables.
The AIG Advantage
- Non-cancellable credit limits available for qualified clients
- Access to AIG’s Trade Credit Platform, an online platform for coverage reporting, and where insureds can request additional limits
- Coverage available for domestic, export or multinational sales, as well as to lenders that finance trade receivables
- Flexible program structure
- Dedicated claims support
- Network of experienced insurance professionals in 215+ countries, operating in jurisdictions where our clients need us