The Canadian property and casualty insurance industry is expanding with the launch of the Receivables Insurance Association of Canada. “Less than 1 percent of Canadian companies currently utilize receivables insurance as part of their financial planning,” said the bulletin. “Canada’s CEOs, CFOs, Credit and Enterprise Risk Managers misunderstand the role of receivables insurance: many believe it can only be used to protect export sales.”
Mark Attley, President of the Receivables Insurance Association of Canada, explained that the lack of receivables insurance coverage represents the biggest unidentified and uninsured exposure facing Canadian businesses.
The coverage acts in much the same way mortgage insurance is designed to protect banks in the event of a foreclosure, receivables insurance protects a business from buyers – in Canada or abroad – that are unable to fulfill their invoice payment obligations.
The new association, backed by a “Group of Seven” underwriters and three founding brokers, invites fellow brokers to grow a $200 million Canadian market to a goal of $350 million within five years.
Source: Receivables Insurance Association of Canada
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