"Whether trading with established customers or seeking new markets, insured companies will benefit from their cash flow and balance sheets being protected against the unexpected shock of non-payment, even as global insolvencies rise by a forecast 8% this year,” said Victor Jiang, CEO of Euler Hermes ASEAN. “Increasing sector and country risks are driving demand for trade-related insurance. In the past, Asian businesses have tended to rely on secure terms such as letters of credit, but with competition for profitable growth opportunities intensifying, they are coming under increasing pressure to offer open credit, even where they may not be comfortable doing so.”
Today more than 80% of trade is conducted on an open account basis . Euler Hermes’ global presence, deep trade risk expertise and knowledge help HSBC customers select the most promising markets and clients for sustainable business growth. Euler Hermes helps insured companies to establish and maintain trading relationships – from initial counterparty vetting using its database of more than 40 million businesses, to prompt claims payment in the event an approved counterparty defaults. Counterparty risk in both developed and emerging markets is monitored throughout the life of each policy.
“This partnership underscores HSBC’s commitment to provide holistic, needs-based solutions for our customers,” said Kelvin Tan, managing director and head of commercial banking at HSBC Singapore. “Trade credit insurance is a strong growth and risk mitigation tool that complements our existing range of Trade and Receivables Finance solutions. We are delighted to have launched our partnership with Euler Hermes at a time when businesses in Singapore particularly need financial security as well as support in identifying – and capturing – growth opportunities.”
HSBC and Euler Hermes, a subsidiary of Allianz SE, have been strategic partners for trade credit insurance in Brazil, Mexico, the United Arab Emirates and the United States since 2008. The partnership has also recently been launched in France, Hong Kong and the United Kingdom.
Euler Hermes’ Asia Pacific trade credit insurance activities were established in 2000 and today are present in Australia, China, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan and Thailand. More than 250 people are employed in Euler Hermes’ trade credit, bonding and collection services across Asia Pacific. Euler Hermes’ APAC headquarters are based in Hong Kong.