Academy Workshop - Credit Risk insurance: a ‘go to’ guide

In an uncertain economic environment, credit risk insurance can be an important tool for financial resilience enabling businesses to trade and invest with greater confidence. This session will explore how credit risk policies operate and ways to manage practical challenges during the policy and in the event of a claim.

Using practical examples to bring these issues to life, this session will cover:

1. Typical structure of credit risk insurance policies
2. Who avails of the policies and the differences in what is being covered based on who takes out the policy e.g. if covering banks or other commercial entities
3. Dealing with issues at various stages in the life cycle of the policy, from pre-contractual disclosure to insurance contract terms and subrogation
4. Practical challenges during the life of the policy including: (i) changes to underlying transaction; (ii) reporting requirements; and (iii) record keeping
5. Practical challenges in the event of a claim such as: (i) notification; (ii) continuing conduct; (iii) potential coverage issues; and (iv) third party recoveries
6. Regulatory requirements if used for capital relief - CRM requirements

By the end of the session, you will be able to:

• Evaluate what a credit risk policy covers and how it operates
• Identify key terms to be aware of in a credit risk policy
• Explain the practical challenges that exist for policyholders during the life cycle of a credit risk policy 
• Recognise the regulatory requirements if credit risk insurance is used for capital relief 

Speakers:

 Sarah McNally, Partner, HSF Kramer

Tomás Mac Gearailt, Senior Associate, HSF Kramer