PIONEERING TRADE CREDIT INSURANCE IN AMERICA
ATRADIUS TRADE CREDIT INSURANCE, INC.
FINANCE
Giving Credit Atradius Group is a world leader in trade credit risk thanks to a simple philosophy: close collaboration with its customers Writer: Dani Redd | Project Manager: Sam Love You always think about insuring your property, or about key man insurance if you are an SME, and insuring your fleet if you have cars. It is mandatory to ensure these assets. But a business’ receivables balance sheet – often its largest asset – goes uninsured a lot of the time,” Gordon Cessford tells us. He heads up the America region of Atradius, a multinational business specialising in trade credit insurance. In America, trade insurance is not very well known, and the market is underpenetrated. This is something that Atradius is here to change. “Credit insurance is a very simple product,” Cessford explains. “Company A sells to Company B. They give them an amount of time – say 60 days – to settle the receivable. If after that time the bill has not been settled, they flag it to Atradius. We try and collect, and if we can’t, then we settle that invoice.” An insured customer thereby has the assurance that they will receive
payment for services they provide. It gives larger companies confidence to explore new markets and offerings while, for smaller and medium businesses, it provides vital financial security. In today’s current economic climate, trade credit insurance has never been more necessary.
A CLIENT-FOCUSED BUSINESS The Atradius Group is a world leader in credit insurance and debt collection, having been in operation since 1935. It currently has 3,700 staff members operating in 54 countries and revenues in excess of two billion euros. Atradius has 12 offices across the U.S., Canada and Mexico. The U.S. operation, Atradius Trade Credit Insurance, Inc. (ATCI) is headquartered near Baltimore, Maryland and also has offices in New York, Chicago, Irvine, Dallas, New Jersey and Indiana. ATCI works in two ways – with a range of broker partners and through its agents in the field who bring in direct business.
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ATRADIUS TRADE CREDIT INSURANCE, INC. “One of the challenges in the U.S. market is the geographical spread, because we prefer being close to our clients. Working with such vast geographical distances makes it difficult to be as close as we would like to these clients,” Cessford says. “I’ll give you an example – in China, most of the business is done in Beijing, Shanghai or Shenzhen, so with three offices we captured 60-70 percent of the market. You can’t do that with the
ATRADIUS WORLDWIDE OFFERINGS Atradius offers the following services through its various units in the group: CREDIT INSURANCE: Credit insurance protects businesses against credit risks, such as the insolvency of their customers. BONDING: Each market requires a different type of surety bond. As a global company, Atradius is attuned to these differences. In certain jurisdictions, but not currently in the U.S., it offers a variety of bonds closely linked to local requirements and customer needs in each of its countries of operation. DEBT COLLECTIONS: Atradius Collections offers debt collections, and will support collections of outstanding invoices in many countries, time zones, currencies and languages. REINSURANCE: As a trusted global leader in credit reinsurance, Atradius Reinsurance has a team of underwriters supporting major credit insurance, surety and bonding firms across the world.
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U.S., it’s just too diverse. Our plan in the U.S. is to expand our reach so we can be closer to our clients.” One can see the company’s commitment to this goal if we look at the growth of offices and employees over the course of the past eight years: ATCI more than tripled the amount of sales people and regional offices since 2012. Being close to its clients is one of Atradius’ main goals, as well as, according to Cessford, one of the key factors differentiating them from the competition. The success of this approach is reflected in 94% customers renewing their contracts year over year, an industry high record. The company takes pride in its customer service and makes sure that it is responsive to client requests and queries. On average, it replies to 89 percent of client credit limit requests within 48 hours. “In order to respond to client request as quickly as we do, we have to have access to information such as credit reports and financials to underwrite it. For small-scale requests, we have artificial intelligence to aid the process, but a lot of it is done with people looking at numbers and giving expert opinions on the clients. We have a significant amount of information we invest in to help give such a quick response,” the President of Atradius in North America explains. Atradius invests heavily in technology. It has a seamless online application process and a comprehensive analytics tool that clients can use to take a further look at their portfolios. It is also developing an application programming interface (API) that will allow customers and clients to directly interact with its systems – instead of logging on and asking for a credit limit, it is done automatically through their ERPs. “That’s very much where we see our strong point moving forward – digital tools that will help us better serve our customers when we cannot physically be there in front of them,” Cessford said.
LNS Insurance Services, LLC LNS Insurance Services has worked closely with Atradius and has maintained a long ongoing relationship with Atradius as well as with our clients. TESTIMONIALS “Throughout our 35-year connection with LNS Insurance Services, they have worked alongside ESI Enterprises with every aspect of our daily Credit Insurance needs. From creatively negotiating difficult coverages, handling past due accounts, claims, and policy structure changing as we grew. We have always been completely satisfied with the high level of service provided. LNS has always provided professional, friendly, and prompt action as needed putting their clients at the highest level of importance. I highly recommend them as a topquality insurance brokerage with excellent knowledge and service on all credit insurance needs.” “I believe that working with and having LNS Insurance Services handle our Credit Insurance policies for the past 15 years has been a true advantage for Private Label PC Inc. Their expert knowledge and personal care in negotiating a policy that works for us, having a broker that will fight for what we need on a daily basis, and working hand in hand with our company on a daily basis on all issues has enabled Private Label to maintain and grow business securely and confidently. In today’s unsure domestic and global trade, peace of mind is important and for this we thank LNS.”
(562) 343-5478 lns@prodigy.net
LNS INSURANCE SERVICES, LLC Credit Insurance Specialist Broker
Our goal is not only to find the best coverage, terms, and structure but to assist you in understanding Credit Insurance; how to administrate it and use it as an asset to your company.
Credit Insurance is the wall between success and failure in today’s uncertain world of trade!
Use it to Grow Safely and Use it to Protect what you have worked so hard to build! With 35 year’s experience dealing solely in Trade Credit Insurance, our goal is not only to find the best coverage, terms, and structure but to assist you in understanding Credit Insurance; how to administrate it and use it as an asset to your company. We are a top independent specialist agency in southern California of all the credit insurance policies now being written. Our global services are worldwide with direct access to underwriting. We market and place credit insurance as well as providing full daily service in all aspects of the daily administration of the policies to our clients such as:
• Processing and recording all limit requests and coverage decisions as needed • Negotiating and dealing directly with underwriting on difficult coverages. • Assisting in obtaining needed buyer documents if necessary • Processing & handling buyers reviews, past dues, and coverage issues
3350 E 7th Street, Ste 501, Long Beach, CA 90804
• Receiving, reviewing, recording and handling claims
Telephone: (562) 343-5478 Fax: (562) 343-1179 Email: LNS@prodigy.net
• Negotiating new policies, renewal terms, and competitive quotes
www.lnsinsuranceservices.com
ATRADIUS TRADE CREDIT INSURANCE, INC.
One Source Risk Management One Source Risk Management and Funding was established in 1988 and today stands as the largest speciality credit risk broker in North America. The company manages over 1,000 clients and operates out of its global operations and service hub located in Houston, Texas. Bolstering its presence are additional offices in both the USA and Canada, along with more than 550 dedicated specialists around the world who provide access to expertise insurance, risk solutions, support services, monitoring, credit consulting, marketing, collections and risk management.
Gordon Cessford, President of Atradius North America
FEEDBACK IS SUCH A VALUABLE THING. IT LETS YOU KNOW WHETHER YOU ARE GOING IN THE RIGHT DIRECTION OR IF A PARTICULAR AREA, SUCH AS UNDERWRITING OR CLAIMS, NEEDS A STRONGER FOCUS” – GORDON CESSFORD
One Source Risk Management and Funding is a member of the International Credit Brokers Alliance (ICBA).
RELATIONSHIP-BUILDING
Trade Credit Insurance
Cessford believes that building relationships is key to growing and maintaining business. “We have our own sales team but broker partners are our lifeblood. We are very committed to working closely with them,” he explains. “We have open, honest, transparent dialogue with them. They are brokers so their role is to find the best possible deal for their clients, but we work closely with them. I call it a true partnership. We have tough discussions with them – I don’t shy away from it, and neither do they; they like to engage.” ATCI relies on brokers for constructive feedback about its products and services. Before COVID, it would hold regular meetings with its brokers to see what they are looking for and how it could improve. In 2021, it will undertake an extensive survey project to help ascertain the company’s strengths and areas 6 | North America Outlook issue 01
needing work. “Feedback is such a valuable thing. It lets you know whether you are going in the right direction or if a particular area, such as underwriting or claims, needs a stronger focus. We rely heavily on our broker partners to give us that feedback,” the President of ATCI says. Atradius’ continued high performance is a key aspect of relationship-building with brokers. “We have to make sure we offer the service that is sold to clients – if they tell their client ‘go with Atradius, they are the best in class, have great underwriting skills and are fun people to work with,’ and then we’re none of those things, it doesn’t work. Brokers are good people to work with because they are always challenging us,” Cessford explains. Moving the focus inside of the organization, he believes that Atradius is a high-performing company thanks to its excellent staff.
mike@onesourcerm.com
During these difficult times, our services create a meaningful difference to our customers, their employees, and their families. Trade Credit Insurance Agency (TCIA) assisted several customers in receiving critical claim payments during the pandemic. One customer with a seven-figure loss avoided bankruptcy because we were able to get their claim paid early. Another business would not have made it if they had not insured their largest customer who closed their doors permanently. We are proud that TCIA plays a role in keeping these companies and their employees afloat during difficult times.
www.tciallc.com
FINANCE
Growing business, Securing success
OUR SERVICES RISK TRANSFER
RISK FINANCING
Credit Insurance Structured Credit Political Risk Insurance
Collateral Enhancement Supply Chain Finance Factoring
RISK SOLUTIONS
RISK MANAGEMENT
Receivable PUT Options Alternative Risk Transfer Strategic Use of Captives
Credit & Collections Consulting Credit Management Support Commercial Collections
Mike DeLuca - Phone: (443) 838-4141 Email: mike@onesourcerm.com
PROTECTION AGAINST BAD DEBT Insolvency, Non-Payment, and Political Risk loss protection. ACCESS TO RISK INFORMATION Our professional relationships with carriers provide your risk team with invaluable information on customers and prospects. BE MORE COMPETITIVE Safely extend terms to customers to increase sales. IMPROVE BORROWING ABILITY Receive additional working capital from your bank with insured accounts receivable. EXPERT EXPERIENCE TCIA, LLC is a brokerage of experts with over 140 years of experience working with companies like yours to address your credit risk and financial needs.
Grow and protect your business with Trade Credit Insurance Contact us today to see how a Trade Credit Insurance progam can benefit your company. T 716.932.7713 E info@tciallc.com WWW.TCIALLC.COM
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ATRADIUS TRADE CREDIT INSURANCE, INC. “Our people are the core of the business, and we have the best people in the business on our team,” he tells me. Cessford believes that attracting and maintaining the best talent is fundamental to the business. Atradius ensures staff are well supported, both from a wellbeing perspective and in terms of their growth within the company. It is important to understand each individual staff member – their goals, areas of strength and areas of development. Cessford welcomes internal feedback as much as he does external feedback, as it helps him develop his staff, which he believes is Atradius’ biggest asset. “I have to give credit to our team who are hardworking, dedicated and committed to providing the best possible service to our clients, with a good deal of fun and smiles at the same time,” he says.
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COVID-19 During 2020, the business landscape changed drastically on a week-byweek basis. Businesses have had to adapt and become more resilient. ATCI is no exception. The company put the health and safety of its staff first and foremost, so employees have been working from home since the onset of the pandemic to provide uninterrupted service to their clients. Its second objective was to build more flexibility into products for its clients. In particular, Atradius Group offered some extensions in reporting deadlines and premiums settlement to ensure that businesses affected by Covid-19 related closures and supply chain disruption could continue being protected by its insurance policies. “This allows companies to still have the benefit of the coverage, which is what they need at the moment, because there’s such uncertainty around lockdown and businesses remaining solvent,” Cessford explains.
FINANCE
ARI Global, Inc.
Global Brokers of Accounts Receivable Insurance
Credit Insurance Offers: • • • •
Catastrophic Loss Protection Safely Increase Existing Credit Lines Safely Sell to New Clients Include A/R concentrations
• Offices throughout the United States • Correspondent Brokers in Europe, Asia, America, Canada, Australia www.ariglobal.com 1311 N. Westshore Blvd. • First Floor • Suite 315 • Tampa, FL 33607 Office: (800)320-7338 - (813)288-8680
The pandemic, however, negatively affected the trade credit insurance sector as well. “We are very upfront about this issue,” Cessford says. “Clearly, the impact of COVID-19 on businesses means we have to manage our exposure levels, by reducing or sometimes removing credit limits. It’s not great news, but we are very transparent about what we’re doing and how and why we’re doing it.” Atradius learned how to react from the 2007-2008 global financial crisis. “This time around, communication has been key. We’ve made coverage reductions with full transparency to the client. We have had great feedback from clients and brokers praising us for the way that this has been done. Despite the fact that reducing coverage is not what we prefer, the positive feedback we’ve received has been really heart-warming.” Cessford stresses that coverage reductions should not be seen as
info@ariglobal.com | creditinsurance.com
Atradius working against the client; rather, it is working with them to help manage their credit limit. “We are in the business of risk management and we are true partners with our clients,” he says. “We are in the business of supporting them – it’s not just about risk transfer. For example, with accident insurance, you have an accident, you get paid. With credit insurance, someone does not pay, you get your claim settled. But we are also managing that relationship so we ask our clients to only take risks they can afford. We’re adding value to that relationship and complementing
what a company is already doing for their credit management procedures.” Adding value to client relationships is what ATCI wants to continue doing. Like any business, it wants to continue growing, with plans to expand its reach throughout North America. But Cessford stresses the importance of growing sustainably and continuing to build partnerships and nurture staff talent. “I want to work with clients and brokers who have a long-term goal in mind, not those who are here today, gone tomorrow. That is not the kind of relationship we look for,” he concludes.
ATRADIUS TRADE CREDIT INSURANCE, INC. Tel: +1 410 568 3850 info.us@atradius.com www.atradius.us
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ATRADIUS TRADE CREDIT INSURANCE, INC. 211 Schilling circle, Ste 200 – Hunt Valley, MD 21224 USA Tel: +1 410 568 3850 info.us@atradius.com www.atradius.us PRODUCED BY NORTH AMERICA OUTLOOK MAGAZINE