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Credit Insurance news:
Rycroft are please to announce the introduction of a Credit Insurance policy that puts the control of who you are dealing with firmly in your hands. For companies with a turnover above £16m (20m) who have a sound* credit management policy, Rycroft can arrange a credit insurance policy that allows you (the policyholder) greater control of your ledger rather than having to refer your accounts to the insurer for vetting all the time.
The policy is based on risk share, so the more risk you retain as a policyholder the better the premiums. Excess of Loss policies (catastrophe) are not new, however, this policy allows the holder to set the perimeters of the policy, rather than the insurer, meaning that you set the levels of loss you are comfortable with and can budget for, leaving the real and any unforeseen risk that could harm your company for the insurer.
The real benefit here is that you get to keep more of the premiums that would normally be allocated, meaning that you can quickly build up a better bad debt reserve whilst trading in the knowledge that your company has minimised the risk associated with bad debts.
The difference with this policy over others available is that the limits are not set and controlled by the insurance company, they are regulated by the policy holder, by an independent third party (where a credit reference agency is used as part of the normal credit control procedures) and by the buyers good conduct, i.e. the better the buyers accounts and the way they pay their suppliers, the better their available credit rating, thereby negating the instances where the insurer is already fully committed to the buyers accounts.
At last, an insurer that puts you back in control.
Other policy structures: -
Notes for the self underwriting policy
UK and European availablity. Companies with an overseas (European) parent or subsidiary can be named on the policy.
Policies can be written in a variety of languages.
The insurer is backed by major investors from both local government and from international companies and all reinsurers are A+ rated.
* Credit limits are decided by the client, in line with their normal credit management procedures and credit control disciplines - A sound credit control
would be one that has set procedures that are followed, for example:
Policies are priced on an individual basis, taking into account the level of risk the policy holder feels comfortable to retain and the level of liability for
the insurer, for example, a policy could be priced based on either a percentage of the turnover (traditional) or by a tranche of cover, say £25m
maximum liability and the policy holder would decide how that liability is spread in his ledger. It is for the policy holder to decide what levels of risk
both he and the insurer have, this again gives more control to the policy holder as to the policy structure and costing.