Trade Credit Insurance can support Banks & Financial Institutions

international trade financing It traditionally falls under the purview of banks and other non-banking financial institutions (NBFIs) across all industries. Recently, there has been a significant increase in global visibility on trade finance, particularly in the GCC region, emphasizing its role in supporting both international and domestic trade transactions.

There is growing recognition of the need to broaden trade finance ecosystem Covering both global and regional supply chains.

Over the past 5 years, the UAE has witnessed outstanding growth in financing within the business landscape, which is projected to reach AED 2 trillion by 2030. And with the emergence of KSA as a significant regional (even global!) player, the trade finance market is now more than ever influenced by the dynamics of non-oil trade transactions, reinforced by the state's diversification strategy.

Banks generally provide traditional financial documentary trade instruments such as letters of credit, letters of guarantee, structured letters of credit and bills of exchange to assist customers in trading while managing the associated risks and providing working capital.

With the expansion of the insurance market in the GCC, trade credit insurance (TCI) It is gaining prominence as a valuable supporting instrument for banks and financial institutions as compared to traditional financial instruments.

By protecting against the risk of non-payment, trade credit insurance stimulates trade finance making financial institutions more willing to offer financing solutions to importers and exporters, thereby promoting international trade.

As an insurance partner specializing in credit risk mitigation and capital relief optimization, Allianz Business in the Middle East provide Factoring and Capital Relief Solutions To protect against the risk of non-payment of transactions.

The Unconventional Trade Credit Insurance (TCI) solution will assist banks' customers in:

• Reducing the risks associated with global trade: TCI helps financial institutions reduce the risk of unpaid invoices or delayed payments by insured parties.
• Generating additional debt through hunger: With the protection provided by trade credit insurance, financial institutions can feel more confident in lending to businesses, including those operating in volatile or international markets.
• Improve Customer Relationship Management: TCI can help improve the relationship between financial institutions and their customers and diversify their portfolios.
• provide competitive advantage: Financial institutions that include trade credit insurance in their services gain a competitive edge, providing enterprises an additional layer of financial protection and risk management assistance.

Allianz Trade in the Middle East Sponsors ITFA Panel at GTR MENA Event

Since Dubai is hosting famous and high-profile people GTR MENA ConferenceAs a major event that brings together key stakeholders in global trade and finance, the role of trade credit insurance becomes increasingly important.

We, Allianz Trade in the Middle East, the leading provider of trade credit insurance in the region, are proud sponsors of GTR MENA 2024, reaffirming our commitment to supporting businesses and financial institutions across the region.

Through our sponsorship of GTR MENA, we will be participating in a conference in collaboration with with ITFA Middle Eastto talk about the new era trade finance distribution And particularly on the types of trade finance deals we are seeing greater capacity and associated insurance solutions that we can provide.