15
Nov
2017

Three Tips for Avoiding the Non-Disclosure Defense in Trade Credit Insurance

Insurance Research Letter

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PUBLISHED ON: November 15, 2017

Faced with a growing number of insolvencies worldwide and a global crash in commodities prices, trade credit insurance policyholders are increasingly filing claims. According to a joint survey of members of the International Union of Credit Investment Insurers and the International Credit Insurance and Surety Association, more claims were filed under trade credit insurance policies in 2015 and 2016 than at any time since the 2007-2008 global financial crisis.

Although there is a view that trade credit insurance claims are paid at a higher rate than other insurance claims, disputes over trade credit claims can be just as contentious as other insurance claims. One issue common to such disputes is alleged non-disclosure.