1. The insurer’s experience
A surety or guarantee issued by an experienced insurer with an established name inspires confidence. It is also important to find an insurer with an extensive team of commercial and administrative staff who can offer customer-oriented service.
2. Financial rating
In order to assess the financial strength of your insurer, your trading partners may sometimes require insight into the minimum ratings that guarantee providers must meet. Independent rating agencies such as Standard & Poor’s, Fitch and Moody’s evaluate the creditworthiness of financial institutions and insurers. The higher this rating, the more reliable you are for your trading partner.
Larger projects with serious financial implications require sureties or guarantees for substantial amounts. In concrete terms, this means that you must be able to rely on an insurer that has sufficient financial capacity.
4. International network
If you are active internationally, you must be able to count on an insurer with a global network. In such a case, international branches and/or partners are an absolute must. This allows you to issue sureties and guarantees quickly and at little additional cost in the language and according to the practices of your beneficiary’s country.
5. Simplified administration
A user-friendly online application allowing you to view all your outstanding guarantees, monitor your remaining capacity and receivables, and so on. This will gradually become the minimum standard. Such a tool gives you the possibility to monitor all your sureties and guarantees efficiently and in real time.