QBE AIMS TO BE LEADER IN TRADE CREDIT INSURANCE
Source: QBE Insurance Malaysia Bhd Press Release, 2 January 2013
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.