Series prospectus trade_credit_insurance_europe

Trade Credit Insurance in Europe

© Finaccord Ltd., 2013 Web: www.finaccord.com. E-mail: [email protected] 1

Trade Credit Insurance in Europe Series prospectus for an overview

plus ten country-specific reports

AUSTRIA, BELGIUM, FRANCE, GERMANY, ITALY,

NETHERLANDS, POLAND, SPAIN, SWITZERLAND, UK

March 2013

http://www.finaccord.com/

mailto:[email protected]



Prospectus contents

What is the research?

What is the rationale?

What methodology has been used?

How do brokers, banks and trade associations surveyed break down?

What is the structure of the reports?

What are the key features of the research?

How can the research be used?

How can the PartnerBASE™ be used?

Who can use the research?

What are some of the key findings?

What are the costs and format?

How can the research be purchased?

3

4

5

6

7

8

9

10

11

12-15

16

17

Page





What is the research?

Finaccord’s research about trade credit insurance in Europe, composed of an overview study

covering all ten countries plus ten individual country-specific reports, is about the market for this

form of cover in Austria, Belgium, France, Germany, Italy, the Netherlands, Poland, Spain,

Switzerland and the UK. Valued at just under EUR 4 billion in gross written premiums in 2012, this

market began growing again in most countries following the macro-economic shocks of 2009 and

2010 which caused cover to be withdrawn from areas perceived to carry excessive risk.

In addition to documenting the development of the market value from 2008 to 2012, the reports also

divide it for the most recent year between four key segments: between small companies with an

annual turnover of less than EUR 5 million and larger companies with a turnover above this

threshold; between single-risk and annual policies; between export and domestic trade credit

insurance; and between protection acquired for political risks and cover bought for business risks.

These unique market splits are based in part on a survey of 240 leading brokers of trade credit

insurance across the ten countries. In each country, this same survey also identifies the

underwriters of this type of cover used by brokers on a regular basis, gives an input into Finaccord's

estimates for the market shares of underwriters and brokers of trade credit insurance, provides a

basis for commentary surrounding distribution channels used for this type of policy, and informs

Finaccord's forecasts for the market value through to 2016.





What is the rationale?

There are several reasons for producing these reports and their associated PartnerBASE™

datasets and market data files about trade credit insurance in Europe. First, these are the most

comprehensive studies of the subject ever published across the ten countries in question in spite of

the fact that the combined market was worth close to EUR 4 billion in gross written premiums in

2012. Secondly, it is an unusual market when compared to most forms of non-life insurance that is

often subject to quite extreme fluctuations in growth and profitability from one year to the next.

Thirdly, it is a market that for historical reasons remains relatively concentrated with three

international groups - namely, Atradius, Coface and Euler Hermes - accounting the vast majority of

business underwritten in most countries. However, Finaccord's investigation indicates that there are

more than 30 other underwriters of trade credit insurance seeking to challenge their position across

the ten countries investigated.

Finally, in keeping with many non-life insurance sectors, it is a market in which optimising use of

distribution channels is often critical to the success of the various competitors. These can include

not only brokers but also agents, bancassurance, direct sales and affinity marketing via trade

bodies, such as national associations of exporters. For the first time in a published format, this

study also provides in-depth coverage of the distribution systems used for trade credit insurance in

each country.





What methodology has been used?

This report is based on an extensive program of primary and secondary research conducted between

January and February 2013. In addition to the survey of 240 major brokers of trade credit insurance,

the investigation also comprised parallel surveys of 230 major banks serving business customers and

220 large trade associations. The split by country of each of these samples is given in the three pie

charts overleaf. The objective of the additional surveys of banks and trade associations was to

ascertain which were selling trade credit insurance to their customers or members and, among those

that were, the brokers and underwriters with which they maintained partnerships to this end.





How do brokers, banks and trade

associations surveyed break down?

BROKERS

TRADE ASSOCIATIONS

BANKS

Austria, 13

Belgium, 10

France, 30

Germany, 30

Italy, 30

Netherlands, 17

Poland, 30

Spain, 30

Switzerland, 20

UK, 30 Austria, 26

Belgium, 12

France, 20

Germany, 30

Italy, 50

Netherlands, 11

Poland, 10

Spain, 45

Switzerland, 13 UK, 13 Austria, 20

Belgium, 20

France, 20

Germany, 20

Italy, 20

Netherlands, 20

Poland, 20

Spain, 20

Switzerland, 20

UK, 40





What is the structure of the overview report?

Executive Summary: provides a concise evaluation of the report’s principal findings.

Introduction: discusses rationale, research methodology, sample breakdown and definitions.

European Overview: this chapter begins by presenting the development of the market for trade

credit insurance across the ten countries in terms of gross written premiums from 2008 to 2012

before segmenting the value in the latter year between: small companies with an annual turnover of

less than EUR 5 million and larger companies with a turnover above this threshold; between single-

risk and annual policies; between export and domestic trade credit insurance; and between

protection acquired for political risks and cover bought for business risks. It then provides estimates

for the market shares of leading underwriters, illustrates frequency of usage of all active

underwriters across the brokers researched, discusses the relative importance of competing

distribution channels and reviews the prevalence of affinity schemes for trade credit insurance set

up by banks and trade associations. Finally, it forecasts the value of the market through to 2016

including a split between export and domestic trade credit insurance.

Austria, Belgium, France etc.: the structure is similar to that outlined above but with analysis and

commentary specific to the country in question. Data for the value of the factoring market in each

country is also provided.





What are the key features of the research?

Key features of these reports include:

• quantification of the market size for trade credit insurance in each of the ten countries: how much is

each market worth, where is the fastest growth occurring and how do they break down into key

segments?

• presentation of the actual or estimated market shares of both brokers and underwriters of trade

credit insurance in 2012 based on both the survey of 240 brokers and other available data sources;

• audit of the frequency of usage of underwriters by major brokers of trade credit insurance in each

country: to what extent are competitors effectively challenging the dominant trio of Atradius, Coface

and Euler Hermes?

• availability of an accompanying PartnerBASE™ dataset that logs partnerships for trade credit

insurance identified by Finaccord across major banks and trade associations in each country;

• forecasts for the market for trade credit insurance in each country and how it will split between

domestic and export trade credit cover: what is this sector likely to look like in 2016?





How can the research be used?

You may be able to use these reports plus the accompanying PartnerBASE™ datasets and market

data annexes in one or more of the following ways:

• to compare the size, growth rates and future prospects of trade credit insurance markets across

ten major countries in Europe;

• to appreciate the relative importance of export trade credit insurance, single-risk policies and cover

for political risks in each country, plus the amount of business attributable to small companies;

• to evaluate the potential for your organisation to increase its share of trade credit insurance broking

or underwriting in each country;

• to understand the competitive environment for underwriting and the degree to which brokers

display interest in placing risks with alternative underwriters;

• to gain access to a single comprehensive source of information providing broker and underwriter

details for affinity schemes and commercial partnerships set up for trade credit insurance.




© Finaccord Ltd., 2013 Web: www.finaccord.com. E-mail: [email protected]

Organisation Country Trade association subset Offered? Operating modelBroker partner

(if applicable)

Underwriting

partner (if

applicable)

Procamex - Association d'Exportateurs France Other miscellaneous Yes External underwriter Coface

Processing and Packaging Machinery Association UK Manufacturing and packaging No

RAI Vereniging, Nederlandse Vereniging de Rijwiel-

en AutomobielindustrieNetherlands Manufacturing and packaging No

Recruitment and Employment Confederation UK Business and personal Yes External broker LDPA Credit

Road Haulage Association UK Transport and tourism Yes External broker Gallagher Heath

Saint Charles Export France Food, drink and healthcare Yes External underwriter Euler Hermes

10

How can the PartnerBASE™ be used?

Filter by type of

association

Choose

operating model

Identify insurance

underwriters

Look up specific

organisations

Select country

Note - The PartnerBASE also includes data for the number of members of trade associations and a separate field is

provided covering partnerships between banks and providers of trade credit insurance

Source: Finaccord PartnerBASE for Trade Credit Insurance

Identify insurance

brokers





Who can use the research?

1. Insurance underwriters: tailor your company’s strategy armed with the most in-depth research

yet published about trade credit insurance in Austria, Belgium, France, Germany, Italy, the

Netherlands, Poland, Spain, Switzerland and the UK;

2. Insurance brokers: identify the most significant brokers of trade credit insurance in each

country and appreciate the distribution share of brokers for this form of cover relative to

alternatives such as agents and direct sales;

3. Banks and factoring companies: assess the potential for your organisation to act as a

distributor of trade credit insurance given the size of the market as a whole and the apparent

importance of banking institutions as distributors;

4. Management consultancies: are you helping a client firm to understand its own strategy with

respect to trade credit insurance in Europe? These studies will provide you with rapid insight

into the subject, saving time and effort on researching the subject yourself.





What are some of the key findings? 1. By 2016, Finaccord predicts that the combined market across all ten countries will

be worth EUR 4.27 billion of which 37.4% will be due to export trade credit cover

Source: Finaccord analysis

Domestic trade credit insurance

Export trade credit insurance

5

4

3

2

1

0 2012 2016

Gross written premiums, EUR billion




© Finaccord Ltd., 2013 Web: www.finaccord.com. E-mail: [email protected]

What are some of the key findings? (cont.) 2. In Germany, five underwriters of trade credit insurance are used regularly by

almost all major brokers with a further nine holding fewer on-going relationships

Note – the identities of competitors ranked from 4 to 15 are disclosed in the report itself

Source: Finaccord Trade Credit Insurance Broker Survey

100.0%

96.7%

96.7%

93.3%

86.7%

26.7%

23.3%

13.3%

6.7%

6.7%

3.3%

3.3%

3.3%

3.3%

Euler Hermes

Atradius

Coface

Competitor 4

Competitor 5

Competitor 6

Competitor 7

Competitor 8

Competitor 9

Competitor 10

Competitor 11

Competitor 12

Competitor 13

Competitor 14

Competitor 15

0% 20% 40% 60% 80% 100%

% of brokers surveyed reporting regular use of each underwriter





What are some of the key findings? (cont.) 3. A half of major trade associations surveyed in the Netherlands offer trade credit insurance

to their members with most choosing to work directly with the ultimate underwriter

Offered? Operating

model Broker

partnerships

Underwriter

partnerships

No

Yes

External

broker

External

underwriter

via external

broker

External

underwriter

Mevas /

Aon

Meeùs

Credit

Alliance

Coface

Atradius

Euler

Hermes

0%

20%

40%

60%

80%

100%

Source: Finaccord PartnerBASE for Trade Credit Insurance





What are some of the key findings? (cont.)

4. Key findings from the executive summary of the overview report include:

• Germany has the largest trade credit insurance market in Europe in terms of premiums, and at

EUR 923.6 million accounted for an estimated 23.2% of the regional total in 2012;

• Finaccord’s survey of brokers indicates that small companies (i.e. those with the less than EUR 5

million in annual revenue) contribute an average of 26.6% of all premiums across the ten countries;

• the three major international underwriters - Atradius, Coface and Euler Hermes - dominate most

markets accounting collectively for 70% or more of premiums in eight of the ten countries

examined;

• however, AXA is the market leader in Switzerland and across all ten countries there are more than

30 insurers seeking to challenge the dominance of the three major groups;

• with regards to distribution channels, brokers are most dominant in Belgium, France, the

Netherlands and the UK, the agency channel is at its most important in Spain, banks are most likely

to sell trade credit insurance in Austria and Germany, and trade associations in the Netherlands

display a particularly high propensity to market trade credit cover to their members.





What are the costs and format?

REPORT COST *

GBP 2,995

GBP 595

GBP 595

GBP 595

GBP 595

GBP 595

GBP 595

GBP 595

GBP 595

GBP 595

GBP 595


Trade Credit Insurance in Austria

Trade Credit Insurance in Belgium

Trade Credit Insurance in France

Trade Credit Insurance in Germany

Trade Credit Insurance in Italy

Trade Credit Insurance in the Netherlands

Trade Credit Insurance in Poland

Trade Credit Insurance in Spain

Trade Credit Insurance in Switzerland

Trade Credit Insurance in the UK

* VAT at the prevailing rate will be added to the basic price for UK-based buyers. Costs quoted are for a single

office, single country licence only. For corporate user licence options, please see the next slide for further details.

Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred.

These reports about trade credit insurance in different European countries are available as

standard PDF documents. The PartnerBASE™ datasets and market data annexes that accompany

them at no further charge are in Excel format. Prices for these research sets and the pan-

European overview are as follows:



http://www.finaccord.com/uk/report_trade_credit_insurance_europe.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_austria.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_belgium.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_france.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_germany.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_italy.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_the-netherlands.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_poland.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_spain.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_switzerland.htm

http://www.finaccord.com/uk/report_trade_credit_insurance_uk.htm



How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord web site available at

www.finaccord.com/order_trade-credit-insurance.htm and fill in the online order form, clearly indicating:

• report required

• type of corporate user licence, if required *

• billing name

• address and e-mail address

• purchase order number, if applicable

Please allow up to one working day for the delivery of electronic copy by e-mail.

* For the corporate user licence please choose one of the following options:

1. One office, one country: no supplement over and above basic cost of reports ordered

2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered

3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered

4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.



http://www.finaccord.com/order_trade-credit-insurance.htm











Economy & Finance

Series prospectus trade_credit_insurance_europe