As Insured
FCIA's Trade Credit Insurance policies protect financial institutions from nonpayment on trade finance and supply chain loans, as well as on loans secured by trade accounts receivable that are purchased or financed by the lender.
- Policies also cover a variety of the cross-border direct trade financing exposures of financial institutions
- Our minimum premium on Financial Institution products is $20,000
Our main Financial Institution policies are:
Single Obligor Credit Insurance Policy
Provides insurance with non-cancelable limits against nonpayment of trade finance loans to a single borrower.
- Import/export financing
- Pre-export financing
- Political risks or excess of loss credit insurance
Purchase of Receivables Policy
Protects a financial institution against non-payment of trade accounts receivable purchased from a seller of goods or services. Typically the seller enters into a purchase agreement with the financial institution and may act as the collection servicer.
- Financial Institution can “pass back” co-insurance to the seller
- Premiums payable only on actual purchases
- Policies cover one or multiple buyers
- Buyer credit limits are approved by the insurer
- Low upfront premium options available
Trade Payables Financing Policy
Protects a financial institution that funded a buyer's payment of trade accounts payable from non-reimbursement.
- Premiums payable only on actual fundings
- Buyer credit limits are approved by the insurer
Bank Letters of Credit Policy
Provides insurance with non-cancelable limits against non-honoring of a letter of credit that the bank has confirmed.
- Non-honoring of ILC coverage for political and commercial risks
- Can cover single or multiple issuing banks in one country
