As the needs of the businesses the London Market serves evolve, so too must the marketplace itself – and the players within it. The leaders are increasingly devoting more effort to their digital capabilities. Improvements begin at converting paper files to digital stores, which prove much more reliable and closer to hand when analysing the risk exposure of a major shock to trading and automating risk assessments. At the most sophisticated, best practice digital capabilities should extend to implementing response to early warnings of deteriorating creditworthiness, and enabling quick, flexible policy adaptation to keep up with turbulent times and shifting risk appetites.
Leaders are not necessarily always the syndicates with the largest
stamp capacity, but those who carefully manage their resources. In fact,
it is often the niche, new carriers that come forward with fresh ideas
that stand to challenge the status quo and help keep the cornerstone
carriers on their toes. But there are not nearly enough of them on the
international trade credit scene. At SCHUMANN we are now receiving
regular enquiries from prospective new entrants to the credit insurance
market. The barrier to entry is not capacity, it is technology.
Start-ups in this marketplace need to invest in certainty-enhancing tech
to better understand their risk horizon – and, ultimately, succeed in
this well-established corner of the Market.
That is why we are launching in London. This is the most exciting hub for insurance and finance. The demand for increased risk transfer to cover the global uncertainty will flow to EC3. Satisfying that demand when the scrutiny could not be more intense on results requires a platform which is tested and run by experts who have made this sector their home for decades.
Certainty is an increasingly rare commodity. SCHUMANN’s role is to help the trade credit insurance market get closer to obtaining it.