UK companes using credit insurance are not taking full advantage of the wider business benefits available.
UK companies using credit insurance may not be taking full advantage of the wider business benefits. A survey of clients and brokers carried out for Coface UK highlighted the relatively narrow understanding of credit insurance in the market. The survey also revealed the need for a more proactive approach by credit insurance providers and brokers.
The independent research consultancy TNS Finance & Professional Services spoke to 100 Coface UK clients and 40 brokers, and discovered that the majority (62%) believe a credit insurance programme is an integral part of the company's future risk management strategy. However, fewer companies fully understood the wider business and financial advantages to be obtained from credit insurance.
For example, virtually no clients mentioned 'access to financial or market information' or 'a greater ability to plan/forecast' as benefits of their credit insurance policy.
Brokers did, however, cite the wider benefits of credit insurance when promoting service in the market. For example, they regard 'enhanced access to finance/better terms' as a more important benefit than clients do.
Coface UK managing director Malcolm Guest said: "I'm delighted that so many clients appreciate the peace of mind which credit insurance brings, but it appears there is still much work to do in developing a broader understanding. We must continue to educate clients on the wider business benefits, both directly through our promotional activities, and through the broker network. For example, companies wishing to expand should be aware they can use their credit insurance policy as an indication of their financial security in order to obtain additional finance or better terms."
