Pullback by Wary Credit Insurers Leaves Suppliers, Retailers in Bind

By | September 8, 2020

  • September 9, 2020 at 9:04 pm
    Gary Mendell says:
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    Your article focuses exclusively on the (bricks-and-mortar) retail trade and the challenge of obtaining credit insurance for this sector in COVID-time.

    Even amid the present economic downturn, however, most insurance companies actively continue to underwrite credit insurance policies for other industries: manufacturing, distribution, online retail, services, international trade, etc.

    Likewise, the government agency EXIM Bank continues covering nonpayment risks for U.S. exporters who are selling to other countries.

    As a broker specializing in trade credit insurance for 27 years, I was gratified to see an article in your magazine about this coverage.

    Credit insurance is used much more extensively by companies in other countries than in the USA. Now we’re starting to catch up, though. Suppliers are becoming increasingly concerned about getting paid by their customers and that’s driving growing demand here for new credit insurance policies.

    Underwriting capacity has tightened since the outbreak of the pandemic, but by no means are new policies not being written for insureds in in promising sectors.

    Gary Mendell
    Meridian Finance Group
    11900 W Olympic Blvd, 8th Fl
    Los Angeles, CA 90064

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