Catastrophic coverage - Underwriting the Exporter - Key Risk component is the policyholder's ability to assess and control risk. Policy administration such as financial analysis of the buyer/s, credit lines, maintenance of credit files, policy compliance, etc. is the responsibility of the insured. Claim perfection falls mostly on the shoulders of the exporter. Coverage and buyer limits are not typically subject to cancellation or reduction. This is ideal for larger companies with established credit departments and internal credit and collections procedures.
First Dollar Loss - Underwriting the Importer - Key Risk Component is the financial stability of the policyholder's client. Policy administration as defined above is more the responsibility of the underwriter who performs the financial analysis of the policyholder's clients. Buyer limits are named (endorsed) to the policy and may be reduced or cancelled at the discretion of the insurer. Claim perfection is not so much on the shoulders of the policyholder although other compliance conditions apply. Ideal for companies wanting to out source some or all of the credit responsibility.
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