Euler Hermes, the global leader in trade credit insurance, and HSBC, the world’s largest trade finance bank , announced today that Euler Hermes will become the exclusive supplier of trade credit insurance products to HSBC Commercial Banking customers in Malaysia.
This partnership fits within the pioneering global distribution agreement signed between the two parties in 2013. HSBC customers trading on ‘open account’ will enjoy favorable access to Euler Hermes’ industry-leading trade credit solutions and protection against non-payment of receivables debt. Policies will be issued by Euler Hermes’ local partner Allianz General Insurance Company (Malaysia) Berhad (“Allianz General”), a sister company of Euler Hermes within the Allianz Group. Euler Hermes will provide reinsurance and credit assessment and monitoring services to Allianz General.
"Whether they are seeking new markets or trading with established customers, insured clients will benefit from their balance sheets and cash flow being protected against the unexpected shock of non-payment,” said Victor Jiang, CEO of Euler Hermes ASEAN. “We help our clients protect their business relationships, safely grow their sales and gain better access to working capital and funding.”
Today more than 80% of global trade is conducted on an open account basis, and accounts receivables typically equate to more than a third of a company’s assets. Euler Hermes’ global presence, deep trade risk expertise and knowledge will support Allianz General in helping HSBC customers to select the most promising markets and clients for sustainable business growth. This includes helping insured companies to establish and maintain trading relationships – from initial counterparty vetting using Euler Hermes’ database of more than 40 million businesses and local underwriting presence in more than 50 countries, to prompt claims payment in the event an approved counterparty defaults. Counterparty risk in both developed and emerging markets is monitored throughout the life of each policy.
“HSBC is committed to connecting our customers to opportunities," said Andy Grisdale, Managing Director, Commercial Banking, HSBC Bank Malaysia Berhad. "Trade credit insurance complements our Trade and Receivables Finance solutions and is a strong tool to enable businesses to mitigate their risk and grow their franchise. This collaboration with Euler Hermes (in partnership with Allianz General) reinforces our proposition of connecting clients for growth in Malaysia and beyond."
HSBC and Euler Hermes, a subsidiary of Allianz SE, have been strategic partners for trade credit insurance in Brazil, Mexico, the United Arab Emirates and the United States since 2008. From 2013 the partnership has also been launched in France, Hong Kong, Singapore, Turkey and the United Kingdom.