Non-payment

Non-payment

We specialise in providing non-payment insurance solutions to companies operating around the world.

Non-payment insurance can help you:

  • Mitigate the impact of emerging market risk especially during a change of Foreign Government
  • Protect the balance sheet, revenue flow and bottom line
  • Improve the availability and/or cost of trade finance
  • Improve your top line by facilitating sales e.g. allowing you to offer better payment terms to buyers in emerging markets where you are keen to win a contract but hesitant to offer concessionary payment terms or where you are approaching your internal credit limit on the buyer.
  • Enhance your supplier relationships by obtaining insurance protection that makes it easier for you to offer pre-payments
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Areas covered

  • Non-payment by governmental or private buyers
  • Non honouring by the buyer of its obligations under the contract including unilateral termination
  • Pre-completion cost protection against the contract being frustrated due to political risks as well as non-certification by either the buyer or an independent third party
  • Delay or inability to convert local currency into hard currency and/or to transfer hard currency out of the foreign country due to foreign government exchange restrictions
  • The failure or refusal of the buyer to honour in full an arbitration award and/or court judgement made in favour of the supplier.
  • Fair (political) and unfair calling of on demand bonds (i.e. bid, advance payment, performance, warranty bonds) where the bonds are called ‘fairly’, due to a political risk event taking place or ‘unfairly’, where the contractor is not in default of their contractual obligations
  • Non-delivery risk where importers or commodity traders may be required to pre-pay suppliers
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Who we serve

  • Exporters and Importers
  • Contractors seeking to protect their contracts and/or associated on demand bonds for projects
  • Commodity traders for their contracts with both suppliers and buyers
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Claims

We have a dedicated claims team available to help you when a loss occurs. With over $1bn in credit and political risk claims successfully settled since 2008 we have a strong track record in dealing with the complex risks faced by companies trading globally.

 

$1.035bn credit and political risk claims paid since 2008

Graph showing $1.035bn credit and political risk claims paid since 2008

Source: Willis Towers Watson claims data

Why Willis Towers Watson?

The experience and expertise of our people distinguish us from our competitors.  We recognise the power of thinking differently and so our people come from diverse backgrounds including banking, legal insurance broking and underwriting.

We have a reputation for innovation – we developed the first Political Risk captive and the first Basel II compliant wording and continue to adapt our products to meet the needs of our clients.

We have hubs in New York, London and Singapore that give us real time access to the more than 60 insurance markets operating globally. Working from a single profit-and-loss account our clients can be confident that the insurers we recommend are chosen solely on the merits of what they can offer.