Empowering trade with insurance specialism

How trade finance & trade credit insurance have specifically helped empower trade

Trade Finance

Working closely with banks and alternative lenders to create flexible insurance solutions.

Who is it for?

Established trade banks and alternative lenders. Single risks/named buyers: equivalent of BB- or better (by S&P). Portfolios with deductible: wide range of risks.

Trade Finance for Financial Institutions

AIG’s Trade Finance insurance can protect financial institutions as insured against the risk of non-payment of the obligors in trade finance transactions. AIG insurance solutions can help financial institutions to manage credit exposure and reduce regulatory capital allocations in line with Basel Accords and other local regulations.

Trade Finance for Corporates

AIG’s Trade Finance insurance can assist corporates to develop and expand their financing programmes. With Basel Accords compliant insurance cover for buyer non-payment risk of the trade transaction, a lender may have a more cost effective trade finance solution.

 

Trade Finance Credit Insurance

Trade Finance Transactions Covered

Receivables

Confirmed payables

Letters of credit

Structured trade finance

Trade loans/asset backed lending

Trade Finance Solutions

Flow - simple single risk and named buyer wording or market/insured wordings

Portfolio - excess of loss structure

TC Bridge - both corporate and funder benefit from a cost effective solutio 

What Makes AIG Different

Partnerships built on trust, expertise and innovation

Solutions that match funder needs and regulatory compliance for capital relief

Includes scalable programmes, on/off balance sheet and securitisation style structures

Summary of Policy Types, Obligors Rating and Global Capabilities

Trade Finance Policies

  • Single risk/multi-named buyers or Portfolios
  • Basel Accords compliant
  • Indemnity or Excess of Loss cover
  • Flexible solutions to match the financial institutions risk profile and regulatory capital needs
  • Up to one year or maximum 18 months non-cancellable limits
  • Integrated technology solutions available
  • Trade Finance structuring and back up servicing available
  • Can support group and discretionary limits

Single Risk/ Multi-Named Buyers

  • Obligors rated BB- (or S&P equivalent) or better

Portfolio

  • AIG can consider a wide spread of obligors in a portfolio, with appropriate excess of loss structure

Global Capabilities

  • AIG can provide locally admitted insurance in over 200 countries and jurisdictions.*

* OFAC/Sanctioned Countries excluded. Limited appetite for Cambodia, Myanmar, Turkey, Russia, Brazil, Venezuela, Haiti, certain African and Middle East countries.

Related Documents

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Winning with AIG

See our Risk Appetite

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