Credit Insurance
by Tinubu
Creating seamless digital solution for risk management
Tinubu solutions & services
Find out how insurers and export credit agencies (ECAs)
perform seamlessly with Tinubu Credit Insurance.
What is credit insurance?
Discover how credit insurance supports trade growth.
Credit insurance is a valuable risk management tool for trade. It protects businesses against non-payment for reasons such as insolvency, bankruptcy, or political unrest, helping companies avoid trade debt.
Credit insurance supports business operations and growth, creating working capital efficiencies and providing a competitive advantage in a global marketplace. By underwriting risk with a guarantee of payment, companies have the security and certainty to engage in international transactions.
Frequently asked questions about Credit Insurance
Find out how cross-border risk management support global trade.
How does credit insurance work?
Credit insurance protects a business from non-payment by its commercial trading partners for reasons such as insolvency and protracted default. If a customer fails to pay, a Credit Insurance policy ensures the seller is covered by indemnifying most of the lost amount.
What is short-term credit insurance?
Short-term credit insurance covers transactions with a risk period of up to 12 months. Typically supporting goods and services, short-term credit insurance gives comprehensive protection to policyholders against non-payment or buyer default.
What is medium & long-term credit insurance?
Medium and long-term credit insurance protects companies from commercial and political risk for periods of 1-20 years. These policies focus on goods exports and support large infrastructure, resources, and transportation projects.
How does credit insurance cover political risk?
Political risk credit insurance covers up to 20 years against losses caused by political events for cross-border equity and debt investments. Political risks include political violence, currency inconvertibility, expropriation, embargos, breach of contract, and forced abandonment.
Who provides credit insurance?
Private credit insurers mainly provide short-term credit insurance. Most countries have an export credit agency (ECA) to provide medium-term credit insurance to support their exporters and strengthen their local economies.
How much does credit insurance cost?
When underwriting risk, insurers assess elements such as type and value required, industry, debt history, and trading partners. Generally, the benefit of credit insurance far outweighs the risk of non-payment and potential limitations on trade, competitiveness, and growth. Credit insurance pricing is based on the policyholder's portfolio, the trading terms of their sector, and their debt history.
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