Credit insurance & trade credit — turnover protection

They are distinct lines although often confused. Credit insurance (trade credit insurance): a B2B firm buys a policy to protect itself against the risk of its commercial customers defaulting on invoices. The insured and the beneficiary coincide (the creditor firm). Surety bond: the principal buys a policy that guarantees a third-party beneficiary; the insured (premium payer) and the beneficiary are different. For the surety line see our dedicated surety page.

In credit insurance every buyer (the insured's debtor) has an individual credit limit: maximum insured amount on that specific buyer. The broker or insured requests the limit, the insurer's analyst assesses based on rating (Cerved, CRIF, D&B, Coface, Atradius), financials, sector exposure, and any payment history. Decision: granted/reduced/declined. NewPicass 14.Net handles the request workflow, automatic rating lookup, manual or rule-based decision for thresholds, periodic review, block/unblock on event.

When the insured reports non-payment of a covered invoice within the contractual term (typically 30-90 days past due), a claim is opened: cover verification, documentation (invoice, contract, proof of delivery, dunning), pre-indemnity recovery attempt by the insurer. If recovery fails or exceeds time limits, indemnification to the insured (typically 90%). Post-indemnity the subrogated recovery is activated: the insurer steps into the insured's rights for judicial or out-of-court recovery.

Yes, standard integrations with Cerved, CRIF and Dun & Bradstreet. On request we integrate Coface, Atradius DDM, Euler Hermes, Creditreform or group-proprietary systems. Periodic rating refresh (monthly/quarterly) with automatic alert on downgrade to trigger exposure review.

Yes. Credit insurance is typically reinsured with quota-share treaties (e.g. 30-50%) on flat business and excess-of-loss for loss-peak protection. The reinsurance module handles automatic share allocation to reinsurers (Munich Re, Swiss Re, Hannover Re, SCOR, Lloyd's market), BDX generation, technical accounts reconciliation, claims advice.

Yes, the analytics module exposes aggregated exposure by industry sector (ATECO), buyer country, rating band, residual duration. Key indicators: concentration, top-10 buyers by exposure, default-rate evolution, portfolio loss ratio, IBNR development. Useful for risk management and Solvency II reporting.