"This pioneering partnership between Euler Hermes and HSBC is the first of its kind, on such a global scale, in the trade credit insurance market,” said Wilfried Verstraete
, chairman of the Euler Hermes board of management. “There is a clear business synergy between Euler Hermes and HSBC. Demand for trade-related insurance is being driven by increased sector and geographic risks, and because today more than 80% of trade is conducted on an open account basis. Together, we can offer HSBC customers the combined benefit of our global leadership and strong local expertise.”
Euler Hermes helps insured companies to establish and maintain a trading relationship – 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.
“Trade credit insurance is important to our customers because it enables commerce by boosting confidence and because it protects balance sheets against unexpected shocks,” said Mark Hussein, HSBC’s global head of commercial insurance and investments. “It’s complementary to HSBC’s range of Trade and Receivables Finance solutions, so we’re delighted to be expanding our relationship with Euler Hermes at a time when businesses particularly need financial security.”
HSBC and Euler Hermes, a subsidiary of Allianz SE, have been strategic partners in Brazil, Mexico, the United Arab Emirates and the United States since 2008. The partnership has also recently been launched in Hong Kong and the United Kingdom.
“Today, HSBC has chosen Euler Hermes as a global partner for our market leadership, century-long standing, global capabilities and excellent client service as well as our outstanding financial strength backed by Allianz,” explained Wilfried Verstraete.