by Evelyne Legaux on 03-02-2022
Well, at first glance 2022 is shaping up to be a mixed bag…
At macro-economic level, the picture looks rosy: +5% global GDP growth outlook with many parts of the world bouncing back, emerging countries due to grow faster than the more advanced ones, inflation levels expected to moderate in the second-half of the year, resilient labour market, …
As for the Credit insurance world, underwriters continue to support a rising demand for cover & display favourable risk appetite as a result of a low level of claims over the past two years.
This said, for International Credit teams, the horizon is not cloud-free, far from it… : inflation putting pressure on CLs, strong rise in insolvencies awaited albeit below pre-pandemic levels, harder hit to highly Covid-sensitive economies & sectors, new risks (supply disruptions, climate change, fraud, …) gaining momentum, growing (geo)political tensions, social unrest in countries where civil rights is perceived as a threat, …
In such a volatile world, will Credit underwriters premium levels & risk appetite remain as accommodating as they are today?
More than ever, professional Credit Management is essential for businesses to navigate the aftermaths of the pandemic crisis, manage the financial relationship with customers & protect Cash Flow generation.
Do you understand how the risk profile of your customer base is evolving? What red flags are you looking out for? Do you have a robust Credit policy in place? What about a risk Scoring model?
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