OREANDA-NEWS. April 24, 2012. Allianz Ukraine Insurance Company has developed a commercial credit insurance program for its customers. It provides coverage to the supplier of goods and services for losses caused by customer's failure to repay accounts receivable or customer's bankruptcy on deferred payment transactions (commodity credits). Allianz Ukraine's partner on this product is Euler Hermes, a global leader in commercial risk insurance.

The special feature of commercial risk insurance is not only protection from financial losses at the expense of receiving insurance indemnity. By purchasing the policy, the supplier gets a reliable partner, who performs additional reliability check of all new and current counteragents and helps determine the initial level of commercial relations (permissible commodity credit sum).

Credit risk insurance enables the customer to develop his/her business more actively due to several factors: 

1) Expansion of commercial geography and growth of sales due to the possibility to grant commercial credits to the customers that can’t be dealt with based on a pre-payment basis.

2) Upgrade of customer's credit rating in the eyes of banks, lending companies, rating agencies and investors (shareholders).

3) More beneficial terms for receiving a bank loan. Insured accounts receivable may serve as collateral.

"Over 60% of global commercial turnover accounts for commercial lending transactions. Suppliers are all the time risking their own money and liquidity by providing time extension to counteragents. We offer Ukrainian businessmen to entrust us with these risks in order to have a possibility of focusing on the development of their business. Exclusive terms of partnership with Euler Hermes enable us to guarantee policy holders the best insurance coverage" – commented Denis Kochenkov, Insurance Director at Allianz Ukraine.

Euler Hermes is a member of Allianz Group and the biggest commercial credit insurance company in the world with global market share of 35%. The company's client base has over 40 million companies worldwide. Under the terms of partnership, Euler Hermes will perform individual check of the insured and its counteragents before signing an agreement.