Updates from our CEO

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.

Monitoring Risk

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.

Stay well.

Yours sincerely,

David Dienesch
CEO & Chief Agent Euler Hermes Canada

During these uncertain times, we recognize that you are facing new and unprecedented personal and business challenges. At Euler Hermes, we want to ensure we are doing our part to support you in the days and weeks ahead. We recognize that many of your customers are experiencing business disruptions that are impacting their ability to pay you on time. Therefore, the below changes to your standard policy terms are available effective immediately through May 31, 2020:

  1. For exposures up to $500,000 you will have the option to recognize an additional 60 days on top of your existing Maximum Extension Period or State of Default reporting requirement before you are required to report a past due payment to us. Alternately, you can postpone the due date of a payment without our prior written approval as long as the revised due date remains within 60 days of the original Maximum Extension Period expiration. Requests for this extension on exposures greater than $500,000 will be reviewed on a case by case basis.
  2. For Protracted Default claims up to $500,000, we are offering a 30 day filing extension beyond your existing claim filing period. Note this does not apply to Insolvency claims. Claim filing extension requests for claims above $500,000 will be reviewed on a case by case basis.

All other policy terms and conditions remain the same. I hope these changes allow additional flexibility during these extraordinary times. We are happy you have chosen Euler Hermes as your partner to navigate these rough waters together. Please do not hesitate to reach out to your service team with any questions. It is my sincere wish that you stay healthy and safe in the weeks ahead.

Yours sincerely,

David Dienesch
CEO & Chief Agent Euler Hermes Canada

In light of the fast proliferation of the COVID-19 (Coronavirus) we want to reassure you of our own actions and organization concerning the management and monitoring of this crisis. The Euler Hermes board of management, the economic and risk teams are monitoring the evolution of the situation globally on an hourly basis. A crisis taskforce has been created, and we are making sure that the best actions are taken to protect our joint interests.

If you have clients located in a restricted area (subject to government legislation) or related impacted areas, please make us aware of any concern or question you may have as promptly as possible. We will take specific measures and ensure a case-by-case evaluation.

We are committed to being fully operational during this time, but will do so in a teleworking capacity. Should you have any additional questions or need support, please do not hesitate to contact us directly at 1-800-767-1627 or email us at covid19support@eulerhermes.com and a dedicated COVID-19 Support Team member will be available to assist you. Though we do not anticipate major impacts on servicing, we do ask for your understanding if response times are delayed.

In addition, considering this exceptional situation, if your buyer is located in a restricted area, we would consider on an exceptional basis, as per the terms and conditions of your Policy, any rescheduling request or postponement of your claim filing until the end of the restricted period or force majeure event (as stated by the government or local authority). If you choose to make such a request, please send an email to covid19support@eulerhermes.com so we can ensure proper follow up to your request.

In addition, we will be hosting webinars to provide more insight on the global impacts of COVID-19. Please be on the lookout for invitations following this communication.

We hope these measures will support your activity and help overtake the very exceptional circumstances that are affecting our country.

Yours sincerely,

David Dienesch
CEO & Chief Agent Euler Hermes Canada

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