June 29, 2020
Dear Valued Customer,
Our priority is to provide you with up-to-date information on the companies you trade with and the industries in which you operate, and we appreciate the trust you instill in us to deliver the most accurate risk forecasts needed to protect your business. The purpose of our product is to cover unforeseeable losses, but due to the widespread nature of the global health crisis, losses are now foreseeable.
In recent weeks, our have closely monitored the rapidly evolving market conditions, which are affecting virtually every sector globally. Our economists have confirmed that we are in a recession, with trade and exports stuttering in search of missing demand. The Allianz Research team provides an in-depth analysis of the evolving situation you can read here.
What can you expect from Euler Hermes going forward?
In addition to the catastrophic economic impact of the COVID-19 crisis, our customers are experiencing losses at an unprecedented rate. This is not only the number of losses but also the dollar amount of these losses. For updated information on the impact of these losses by sector, click here.
In order to more accurately reflect the current risk environment, we have made the careful decision to further adjust the existing levels of coverage. We are taking these actions to lessen the deterioration of your portfolio and to help you avoid future losses.
In the coming days, we will begin sending notices of coverage changes outside of our normal credit alert process for accounts we now consider to be high risk.
What we are doing to help
To ensure you get paid as soon as possible, we are adding additional staff to our Claims department as we manage through the crisis to ensure timely claims assessment and processing.
To support you in monitoring the health of your customers where shipments have been disrupted, or if you are considering selling to new customers, we are offering free access through the year-end of our new credit-vetting platform, TradeScore.
As always, your service team remains available to address any questions. Thank you for your continued partnership and for the opportunity to help you balance the growth and safety of your organization. We look forward to emerging stronger together.
SVP, Regional Chief Risk Information , Claim & Collection Officer
Christina Montes de Oca
Regional Head of Market Management, Commercial Underwriting & Distribution