Malayan Insurance partners with Dutch insurer Atradius

Source: https://businessmirror.com.ph/

NON-life insurance firm Malayan Insurance Co. Inc. has partnered with Dutch firm Atradius Credito y Caucion S.A. de Seguros y Reaseguros, a trade credit insurer, which the company said will significantly benefit thousands of local and international commercial businesses.

Malayan Insurance and Atradius hope to increase trade credit insurance utilization by leveraging and maximizing both insurance firms expertise in identifying, managing and alleviating risks, the companies said.

Trade credit insurance, also known as accounts receivable insurance or debtor insurance, is an insurance solution that safeguards businesses from the risk of their clients’ failure to pay for the goods or services they acquired.

It covers the sales contract between the insured seller or company and its corresponding buyer. It helps policyholders recoup their losses or unpaid debts as long as they are within the agreed plan’s limits.

The said insurance has been widely used by companies in overseas markets like Europe and the United States to help them manage and mitigate their risks. The International Credit Insurance and Surety Association said in a report that the global trade credit insurance market reached a premium volume of $13.89 billion in 2022 alone.

Malayan Insurance president and CEO Paolo Y. Abaya said the collaboration between the two firms is expected to reshape and expand the landscape of the local insurance industry “since it will provide an invaluable safety net to a wide range of medium and large-scale enterprises.”

“Malayan-Atradius clients will also have better opportunities for growth since they can now offer credit terms to customers, avail better financing terms from lenders with credit insurance policies, maximize credit management tools, gain quick access to relevant business information, and receive assistance in managing client portfolios,” Abaya said.

Since 1926, Atradius, a company based in the Netherlands, has been a leader in trade credit insurance, surety and debt collection services. It has a growing presence in over 50 countries worldwide and received a financial strength rating of A (excellent) from AM Best with a stable outlook and a Moody’s rating of A1 with a stable outlook.

Atradius N.V. is wholly owned by Grupo Catalana Occidente S.A. and Grupo Compania Espanõla de Crédito y Caución S.L.