As we navigate these uncharted circumstances together, my thoughts are with you and your families. These are challenging times for all of us, but I continue to be inspired by a strengthened sense of community and togetherness. I am grateful that through it all, you have chosen Euler Hermes as your trusted business partner. The well-being of both our customers and employees remains our highest priority.
With that, I want to address what you can expect from us going forward and make sure you are aware of the changes we’ve made to better support your business.
As the crisis unfolds, the volatility in the economy changes with each passing day. I know many customers have had questions as to what this means for their risk exposure.
Over the last year, forecasts showed disruption and declining business performance coming into 2020. Because of this, we were working to adjust coverage levels to match the elevated risk environment. However, the unexpected global health crisis has sent shockwaves through businesses across the globe. The forced shutdowns due to government-imposed stay-at-home orders have triggered devastating short-term effects and the potential for even worse long term effects – which are further increased by the uncertainty surrounding the timeline and scale of the reopening.
During this period, several businesses have already taken actions in an effort to shore up their liquidity and it’s become clear that many are not in a position to handle the headwinds the economy is facing. Even the strongest players have been forced to take actions that have resulted in distressed balance sheets while operating in an environment that has caused their revenues to decline considerably.
Due to our previous forecast, a significant increase in past due reports and claims, and the deteriorating state of the economy, the actions we take now will be more substantial than previously planned. Although you may not be experiencing the signals of distress, we trust our data is providing the warning signs needed to steer your business in the right direction. That’s why we are reducing coverage levels now to ensure we are the strong partner you depend on for both today and tomorrow.
Steps to a Stronger Future
We understand that many of you are in a state of unpredictability and we want to make sure our partnership remains beneficial. Below are some steps we have recently taken to support you and your business during this time.
- Enhanced Flexibility: We now offer more flexibility, including extended claim filing and options to extend payment due dates and are continuously working on additional benefits to help your business.
- Dedicated Support: Our COVID-19 Support Team is available for any questions related to the crisis.
Additionally, with our 126 years of experience—and through each passing crisis—we’ve adapted to become stronger and are proud of the investments we have made to quickly and accurately assess risk in your portfolio. We are committed to guiding you through recovery with our data-driven intelligence, so you can grow safely and confidently in the post-crisis world. Over the last few years we have:
- Increased Specialists: Our staffing increased to 33 data scientists globally. The team focuses on big data, machine learning, and AI to better estimate the impacts of the rapid shifts in the economy.
- Invested in Intelligence: We’ve invested over $4.5 million in multiple data sources to supplement our in-house team of specialists to assess risk and provide you insights into our decision making.
These enhancements have furthered our best-in-class risk rating methodology and allow more robust, accurate, and useful credit assessments and insight that go well beyond information provided through traditional channels.
What’s on the Horizon?
We pledge to keep you informed on all updates and insights related to the crisis. We have a website dedicated to our COVID-19 response where you can find economic insights, risk analysis, information regarding terms and conditions that may affect your policy, and much more.
Our new customer-focused newsletter is currently under development and will be in your inbox shortly. You can expect to receive this publication on a reoccurring basis as we have specific updates or notable news to share.
Please keep in mind, as we address each client's concern with the attention it deserves, you may notice a longer delay in reply than you are accustomed to and I want to thank you for your patience and understanding. As we continue to work together to build a stronger future, we welcome any feedback you have. Please reach out via email or provide feedback here.
No doubt, this is an incredibly challenging environment for us all. We cannot emphasize enough how grateful we are for the trust you put in Euler Hermes to assist your business in guiding your credit analytics. A stronger future for your business is important to us, and we are ready to ring the alarm to ensure that you are fully prepared for what lies ahead.
We’re proud to be your partner and share our confidence in tomorrow, together.
CEO & Chief Agent Euler Hermes Canada