Trade credit insurance gains ground in UAE

25 February 2014

Exposure to small companies rises

Trade credit insurers are increasing their exposure to small-to-medium-sized companies (SMEs) in the UAE and the wider region.

“We have appetite to support SMES in the region,” said Massimo Falcioni, CEO, GCC at German insurer Euler Hermes.

Speaking at a trade and export finance conference held in Dubai on 25 February, Falcioni said the insurance sector has more information on the credit history of companies within the UAE, which makes it easier for insurers to provide cover.

“The insurance industry did not support [SMEs] as it could [have] but the story has changed and we have increased our exposure,” he said.

Euler Hermes increased its trade credit insurance exposure to firms in the UAE by 37 per cent last year.

Falcioni added that by using trade credit insurance, SMEs could access more reasonably priced funding from banks.

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