1. CREDIT INSURANCE
Credit insurance provides protection for clients
against accounts receivable losses. Companies that
sell goods or services on credit terms are highly
exposed to the risk of non-payment due to customer
insolvency, protracted default and political risks that
prevent the buyer from fulfilling its payment
obligations.
What is Credit Insurance?
 Credit Insurance indemnifies the policyholder for the invoice value
of goods delivered to a customer but unpaid due to the customer’s
insolvency or default.
 Policies are written on a 12-month basis, covering goods and
services delivered to customers during the policy period.
 Premium is charged as a rate on annual credit turnover. The policy
features risk-sharing in the form of a self-insured retention.
Who Buys Credit Insurance?
 Any company that sells goods and services on credit terms (i.e.,
extends credit to customers rather than requiring payment up front)
and is exposed to the risk of non-payment.
 Large, medium and small commercial enterprises.
 Subsidiaries or divisions of Multinational companies may buy
coverage for different regions or product lines locally, or under a
coordinated global program.
Top 10 Reasons to Buy Credit Insurance
1. Protects against the risk of a customer default on sales made on
credit terms.
2. Increase sales to new and existing customers.
3. Mitigates concentration risk when a large portion of a company’s
sales are concentrated among a few customers.
4. Facilitates attractive bank financing.
5. Helps establish new foreign markets to increase export sales.
6. Supports a company’s accounts receivable management and
validates credit protocols.
7. Provides an insured credit limit for a customer and monitors
portfolio performance during the policy period.
8. Reduce your company’s bad debt reserve.
9. Offers a solution for directors and officers by providing a second
opinion on customer credit limit decisions and monitoring the customer
portfolio.
10. Provides cost-effective collection agency services.
CREDIT INSURANCE
Protecting your
business

2. Parameter Details
Basis for calculation of
premium
 Estimated credit turnover for coming 12 months
 Excludes VAT, intercompany sales, cash sales
Rate  Between 0.10% p.a to 1.5% p.a
% cover  Between 85% to 95%
Client retention  Between 5% to 15%
Information cost
 Inclusive in the rate (or in some cases paid
separately based on number of debtors in the portfolio)
What is covered?
 Insolvency and Default
 Delivery of goods and services
 Business entities
 Short term: 6 Months
 All countries (except ‘blacklisted’)
Other cover options
 Binding contracts
 Pre-delivery costs
 Consignment
What is not always
covered?
 Political risk cover
Any ceiling?
 Maximum annual liability - usually 30 times the
premium paid or highest credit limit
Types of credit limits
 Credit limits approved by the credit insurer
 Discretionary limits (decision taken in-house by the
client, but still covered by the credit insurer)
Claims
 Protracted default
 Insolvency
Indemnification period
 Protracted default: between 60 to 90 days
 Insolvency: between 30 to 60 days
Debt collection &
Recovery
 Done by the credit insurer
 Amicable and legal ways
Duration of a policy  Fixed duration period - usually 1 year
Security/Collateral
 Can be used as security/collateral assigned in
favour of financing institutions
Risk Shield's credit insurance solutions
 Your duly licensed specialized credit
insurance broker
 Wide array of expert solutions to pre-empt
risks from adversely affecting your business
 Risk management is our sixth sense
 Protecting our clients' businesses against
black swan events
 In-depth expertise in credit insurance
 Agreements with leading credit insurers
worldwide including Atradius and Coface
 Team of professional and experienced
leaders in this field
 Carving the credit insurance policy
according to the client's requirements
 Best pricing and value-for-money deals for
our clients
 Negotiating the most competitive
conditions including risk retention, excess,
profit share, political risk cover, commercial
disputes, etc
Product profile
Risk Shield Ltd | BRN C15133765 | Broker License BI15000104 | 27B, Riverside Street, Coromandel,
Mauritius |  (230) 58 02 11 48 | contact@riskshield.mu
For additional information, visit www.riskshield.mu
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