ACE recruits will join Markel's trade credit team
Markel has bolstered its new trade credit division by raiding ACE for underwriters.
Three underwriters – Adrian Jones, Simon Moon and Carl Titterton – will work under Ewa Rose, who headed up ACE’s global trade credit business before joining Markel in January.
Rose said the trade credit division will provide non-cancellable cover against payment default risks for a broad range of trade sectors including insolvency, default and political risk perils.
Markel will focus on excess of loss cover, working with firms that have sophisticated credit management systems and that only want to buy a slice of risk above a certain retention level.
Rose said this type of cover differs from whole turnover, where the trade credit insurer takes on more exposure, covering the suppliers’ stock sold on a revolving basis. She said some larger companies had become aware of trade credit insurance since the recession and were now looking for cover.
Rose said: “Without doubt there is more demand for this type of cover. We’re seeing a lot of companies who have not previously credit-insured, but who are aware of ongoing risks in the economy.
“Larger companies that have strong balance sheets and are very confident in their own customer base are becoming much more aware of this type of product. They are showing a lot more interest in buying this type of cover.
“All this is combined with the fact that there is new regulation with regard to capital allocation. For that reason, some companies and financial institutions are looking to transfer more risk than they had done previously.”