Receivables Insurance - A Broker Opportunity
Accounts receivable is the biggest unidentified and uninsured exposure facing Canadian businesses today.
Receivables insurance, also known as credit insurance or trade credit insurance, provides property and casualty brokers with an ongoing strategic service opportunity that is highly valued by CEOs, CFOs, shareholders, Credit Managers and Enterprise Risk Managers. Unlike their counterparts in countries with a more mature trading tradition, many Canadian businesses believe they require receivables insurance only if they are trading with foreign buyers. While untrue, this perception helps explain why less than 10,000 companies among the country’s 1.1 million employer businesses currently employ receivables insurance products.
This lack of awareness and vastly under-served market represents an excellent new opportunity. Receivables insurance protects corporate balance sheets against unforeseen buyer failure and political turmoil. If a political event occurs that affects a company’s ability to be paid for goods or services in transit or already provided, the receivables insurance policy that has been purchased will pay out the loss.
Help Business Clients Succeed
Brokers have an opportunity to super-serve their business clients by staying in touch with receivables insurance providers and keeping abreast of changes in the market that could affect their clients.
The Broker Opportunity
RIAC Chairman Chris Short discusses the Credit/Receivables Insurance market opportunity in Canada and how it can be a valuable offering in a broker’s portfolio.
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