The members of the International Credit Insurance & Surety Association (ICISA) met in Tel Aviv for their 74th Annual General Meeting to share and discuss market and industry developments. The main topics of discussions included insuring SMEs, cyber security, Fintech and similar developments and promoting the value of surety bonds, in particular in relation to protecting public funds in large (infrastructure) projects.
During the Annual Meeting the membership elected Jos Kroon (Nationale Borg) as President for 2016/2017 and Richard Wulff (QBE) as Vice President for the same period.
Referring to current trade growth Jos Kroon states: “Trade continuous to grow, but often under less favourable circumstances. Our members’ results indicate early warnings for increased global instability.” Outgoing President Andreas Tesch (Atradius) adds: ”The risk of a sudden economic shock spanning multiple countries has increased.”
Trade credit insurance
“An ongoing drop in the average premium rate seems to have been halted during 2015. Nevertheless competition remains fierce and market conditions soft.
The sector’s involvement with the SME segment has increased, resulting in policies for tens of thousands of small and medium sized companies, countering a perception that this segment is underserved”, Richard Wulff notes.
The surety claims picture is mixed with half of members reporting a decrease in claims while the other half saw a rise over 2015. “The figures reflect that the market situation has not improved for everyone. We have seen the average loss ratio for surety go down, in some cases thanks to favourable recovery measures”, Jos Kroon, President of ICISA, explains.
Members elected Jos Kroon, CEO of Nationale Borg, as their 40th President and Richard Wulff, Group General Manager Credit & Surety at QBE, as their Vice President. Furthermore Atradius and Euler Hermes were elected as members of the Management Committee, which now consists of Atradius, Coface, Euler Hermes, Lombard, Munich Re, Nationale Borg, QBE, and The Guarantee Company of North America. As President, Jos Kroon will build on the work of his predecessor aiming for a continuation of the effective collaboration with peer associations. A wider acceptance by public and regulatory bodies of the security offered by surety bonds will be another area of focus during his term.
The association is pleased with the increase in the number of ICISA members. ICISA is pleased to welcome Travelers, Liberty Mutual and Qatar Re as its newest members. Rob Nijhout, executive director of ICISA notes: “A growing membership is a welcome confirmation of the need for an industry platform to discuss the many challenges that affect the players at the moment. ICISA has proven to be a secure environment for discussing topics of common interest and for offering guidance and food for thought to its participants.”
The International Credit Insurance & Surety Association (ICISA) brings together the world's leading companies that provide trade credit insurance and/or surety bonds. Founded in 1928 as the first trade credit insurance association, ICISA has currently 54 members in total. The trade credit insurance members account for over 95% of the world's trade credit insurance business. Today, with over USD 2.7 trillion in trade receivables insured and billions of dollars worth of construction, services and infrastructure guaranteed, ICISA members play a central role in facilitating trade and economic development on all five continents and practically every country in the world.