Although credit insurance has existed in the United States for at least 125 years, underwriting in the energy sector has been limited almost exclusively to those credit exposures created in the normal course of physical commodity delivery. Until recently, it was very difficult, if not impossible, to get credit insurers to support the idea of covering the financial risk associated with in-the-money credit exposures on longer term, fixed price contracts. As more trade credit and political risk insurers enter the US market every year, the underwriting environment has become increasingly competitive. Carriers seeking to grow their market share must evolve and innovate so as to differentiate themselves from competitors.
This insightful webinar provides an overview of current market conditions for mark-to-market credit insurance, who is underwriting it, how the coverage is typically structured and what are the limitations and/or restrictions of this highly specialized coverage.
