Automated trade credit insurance processes

Credit Risk Managers Under Time Pressure

Companies and banks use trade credit insurance to protect themselves against the risk of default. If a customer is unable to pay an invoice, the trade credit insurance covers it – and is therefore an important instrument for working capital management.

The tasks associated with this create a lot of additional work in business operations. This applies to the application process itself as well as to the subsequent fulfilment of obligations.

By using our software solution CAM, your trade credit insurance can be integrated and all processes digitised. This significantly reduces the workload in your credit management and minimises errors caused by manual work.

Challenges When Using Trade Credit Insurance

Both the application for an insurance policy and its conclusion result in a high administrative workload. Fulfilling the regular obligations that arise after the conclusion of a trade credit insurance contract is particularly time-consuming.

Since trade credit insurance contracts are always very complex and differ from one insured customer to another, each individual contract must be constantly monitored for each and every client.

Complex Tasks for Credit Management Departments

The "correct" implementation of the entire credit management process
Regular checking of agreed discretionary credit limits to see if they have been exceeded
Monitoring of receivables and orders
Prompt notification of, for example, exceeded payment periods and insolvency of the customer
Regular reports of receivables totals, turnover or total limits

Our Software Solution Offers

Clear management of trade credit contract data
Digital application processes and automatic feedback of the credit insurance company into the system
Automated determination of flat-rate limits
Regular automated suggestions when limits have been reduced or cancelled by the insurance company
Automatic reminders for the timely fulfilment of obligations
Automatic generation of helpful reports, e.g. for overdue payments
Automatic generation and transmission of totals reports to the insurance company
Complete overview of trade credit insurance status for individual documents

CAM Provides Standard Interfaces to the Following Credit Insurers

Allianz Trade
Atradius
Coface
R+V

If you already work with a credit insurance company that does not provide an interface, you can enter the trade credit insurance data in CAM yourself. A universal form offers fields for items such as credit limit, credit target, insurance number, status, policy excess, cover ratio, discretionary credit limit and notification obligations.

Benefits of Integrated Trade Credit Insurance Processes

CAM makes it possible to automate trade credit insurance processes completely or partially and to achieve significant relief of the workload.

Significantly leaner processes through a reduction of manual and redundant data entry
Faster workflow through (partially) automated credit limit inquiries and automatic feedback on cover agreements
System support for processes for the fulfilment of contractual obligations
Complete transparency and the documentation through historization of the data

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Limits and Potential of Trade Credit Insurance in Credit Management

Read more here about the basic types of insurance contract, the tasks of the insurance customer and the possibilities for IT-support in the administration of commercial credit insurance contracts.

Content of white paper

White Paper

Integration of Trade Credit Insurance Processes