WBNetADD connect
Direct contact

+32 16 43 11 00

info@add.be Contact us

You are here

How to qualify for credit insurance during economic downturn

28 May 2020


Many companies that did not have credit insurance pre-Covid-19 are now rushing to find a reliable agent willing to take on their risk portfolio. This prove no easy feat, however, as credit insurers have been adopting a more stringent approach to their assessments.

Would you prefer a personal interview?

Significant changes

Before Covid-19, the world had already been witnessing signs of an economic downturn and a rise in insolvencies for years. Recognising the need for a more stringent assessment process, credit insurers had been working hard to modify their approach. The Covid-19 outbreak accelerated their efforts, resulting in the following significant changes:

  • Targeted risk actions: insured companies are asked to provide information on their buyers (outstanding balance, orders in production, payment behaviour, impact of Covid-19). This method has been known to reduce exposure to impacted buyers by 30%.
  • Setting up new contracts requires more detailed information from companies: a recent, detailed loss history, a recent aging balance with information on client portfolios and information on credit management approach are key to acceptance with credit insurers.
  • Following a downward trend in credit insurance pricing which lasted nearly a decade, premium rates are now set to increase. Given the fact that pricing was at an all-time low and considering the significant increase in risk since Covid-19, a 5 to 20% rise can be perceived as relatively normal.


Need help with credit insurance? ADD is at your service

While credit insurers are becoming more expensive and selective in terms of the conditions they offer, they are still open to new clients and contracts. Companies with a professional approach to credit management are almost always eligible for credit insurance at a competitive rate, provided they have suffered limited losses.

Our experts are always happy to help you negotiate the credit insurance your company needs. Please do not hesitate to contact us for a free consultation or more information.

Revisit the webinar (duration 12min): Credit insurance, a security in coronavirus times?


Other news and events

  • Werner Van Steen succeeds Dirk Van Liempt at ADD

    As of February 1, Werner Van Steen will be our new CEO . Dirk Van Liempt is retiring and is already excited about his successor: "It happens that...
    29 January 2021
  • Property

    Fire extinguisher expired? This does not make your insurer happy

    Hopefully we don't have to explain to you that your company needs to have sufficient extinguishing equipment to ensure fire safety in and around your...
    11 December 2020
  • Property

    Fire in your company? You must know the correct extinguisher

    There are enough fire extinguishers in your company, in exactly the right place. In the event of a fire, your staff can immediately put out the fire...
    20 November 2020
  • Transport

    Loading and unloading: is the carrier liable for damage or loss?

    Many entrepreneurs who have goods transported wrongly assume that the carrier is always liable for loss or damage during transport. There is a...
    15 October 2020
  • Trade credit

    Is there credit insurance that also covers preshipment risk?

    Suppose your company makes made-to-measure cupboards and receives a large order from a hotel chain. You enthusiastically set to work in order to be...
    02 October 2020