Euler Hermes Launches Trade Credit Insurance for HSBC Singapore Customers
Euler Hermes has launched trade credit insurance solutions for HSBC Commercial Banking customers in Singapore, within the framework of the global distribution agreement signed in May this year.
Through the partnership, HSBC customers trading on ‘open account’ have favorable access to Euler Hermes’ trade credit solutions.
"Whether trading with established customers or seeking new markets, insured companies will benefit from their cash flow and balance sheets being protected against the unexpected shock of non-payment, even as global insolvencies rise by a forecast 8% this year,” said Victor Jiang, CEO of Euler Hermes ASEAN.
“Increasing sector and country risks are driving demand for trade-related insurance. In the past, Asian businesses have tended to rely on secure terms such as letters of credit, but with competition for profitable growth opportunities intensifying, they are coming under increasing pressure to offer open credit, even where they may not be comfortable doing so.”
Today more than 80% of trade is conducted on an open account basis. Euler Hermes helps insured companies to establish and maintain trading relationships – from initial counterparty vetting using its database of more than 40 million businesses, to prompt claims payment in the event an approved counterparty defaults. Counterparty risk in both developed and emerging markets is monitored throughout the life of each policy.
Euler Hermes’ Asia Pacific trade credit insurance activities were established in 2000 and today are present in Australia, China, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan and Thailand.
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