Middle East News - UAE: National General Insurance to cover bank's trade credit risk
Source: Middle East Insurance Review | Jan 2016
Dubai-based National General Insurance (NGI) and Commercial Bank International (CBI) have signed an agreement to provide trade credit insurance as part of CBI’s receivable financing services. The agreement is backed by Coface Credit Information Services.
Under the terms of the agreement, NGI will provide insurance protection for CBI’s trade products, such as invoice and cheque discounting. This will provide CBI customers with additional levels of protection against non-payment risks.
Dr Abdul Zahra Abdullah Ali, CEO of NGI, said: “This receivable financing model provides an innovative partnership to connect established banks with insurance protection to ease corporate cash flow management. We will leverage on the solid reinsurance capacity of our French partner Coface RE, as well as on the extensive credit information knowledge of Coface Emirates Services, who will provide technical assistance, including credit opinions and risk monitoring on the debtors.”
Mr Mark Robinson, CEO of CBI said: “Credit insurance-backed receivable financing is an essential offering worldwide and we are delighted to partner with NGI and Coface to offer this service here in the UAE. Protecting our exposures with such cover enables us to offer attractive financing options for small and mid-sized businesses in UAE.”
Mr Massimo Falcioni, CEO of Middle East Countries at Coface Emirates Services, said: “This partnership enables Coface Emirates Services to provide credit opinion and information services to CBI and NGI, allowing them to make informed decisions to react faster to customers’ demands and build up a competitive advantage by providing effective credit management information services.”