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LIQUIDITY

ENGINEERING

BANKS, FINANCIAL INSTITUTIONS

Insurance for commercial risks arising from insolvency and late payment.

Financing of sales invoices on revolving base.

TYPE OF COVER:

OBJECT OF COVER:

INSURED RISK:

INSURED EVENT:

POLICYHOLDER:

BENEFICIARY OF COVER:

PERIOD OF INSURANCE:

INSURED VALUE:

MAXIMUM INSURED VALUES:

RISK ASSESSMENT:

CALCULATION OF PREMIUM:

COVER BASEL 3 COMPLIANCE:

ADVANTAGES:

 

 

 

 

 

 

 

NOTES:

Standard trade credit insurance.

Financing of revolving sales invoices (1).

Insolvency, protracted payment delay.

Failure to repay loan by customer.

Bank/Financial Institution (2).

Bank/Financial Institution (2).

12 months.

90% (3).

  • Single risk, single client: € 200 million.

  • No limit on aggregate risk.

  • Minimum premium: depending by risk profile. Limitations to damages limits may apply. 

The risk assessment is performed by the insurance company, in certain circumstances it can be deferred to the policyholder, with reduction of insured values (4).

The calculation of premium occurs based on risk parameters relevant to the borrower, the suppliers and with reference to the applicable industry sector.

The policy is applicable as alternative to the mandatory fractional reserve requirement imposed by the Basel 3 Protocol (5).

For the Bank/Financial Institution:

  • Management of insolvency risk;

  • Avoidance of stranded funding payments;

  • Reduction of fractional reserve by Basel 3 protocol;

  • Repayment with certain terms and times;

  • Additional margin on financing;

  • Marketing, market positioning.

For the funded client:

  • Guaranteed payment of invoices;

  • Risk assessment of sales;

  • Increased liquidity;

  • Reduced cost of financing;

  • Improved positioning on new and/or foreign markets.

  1. Max. invoicing period: 180 days.

  2. Factoring, Leasing, Financial companies, Investment Funds, etc.

  3. Can be extended up to 100%.

  4. Special conditions and/or deductibles apply.

  5. May vary in relationship to the single financial institution and the Central Bank of reference.

 

The economic values and technical conditions indicated, the description of the covers and the policy details are purely indicative and non-binding. The insurance company and the subscription agency reserve the right to assess and decide on the assumption of risks and the emission of policies.

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