QBE AIMS TO BE LEADER IN TRADE CREDIT IN­SURANCE

Source: QBE In­surance Malaysia Bhd Press Re­lease, 2 Jan­uary 2013

Insurance - - COMPANY CORNER -

QBE In­surance (M) Bhd tar­gets to rake in at least RM10mil in pre­mi­ums this year for trade credit in­surance. The com­pany has set its sights on be­com­ing the big­gest player for this class of in­surance busi­ness in the coun­try. QBE's prod­uct of­fer­ing caters to all in­dus­tries, whole­salers, ser­vice providers and ex­porters adding that th­ese in­dus­tries, es­pe­cially ex­porters, were prone to face risks of non-pay­ment from overseas debtors caus­ing them cash-flow and liq­uid­ity prob­lems. This class of in­surance helps pro­tect dis­tressed cred­i­tors from non-pay­ment from trade debtors due to pro­tracted de­fault or in­sol­vency, but also helps to pre­serve the in­sured's cash flows and al­lows them to grow sales with con­fi­dence. The com­pany was ex­pect­ing the bulk of trade credit poli­cies to come from busi­nesses with sales turnover of be­tween RM50mil and RM100mil. It is es­ti­mated that 70% of trade credit clients would come from domestic trade, not­ing that the trade credit pre­mium in the mar­ket was es­ti­mated at RM20mil. With the com­pany mov­ing into its next pe­riod of growth, QBE was look­ing in part to fo­cus on grow­ing spe­cial­ist prod­ucts where its Malaysia of­fice could lever­age on QBE's global ca­pa­bil­i­ties.

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