BPL Global creates new specialist division for excess of loss
Specialist credit and political risk insurance broker BPL Global has created a new specialist division dedicated to excess of loss (XoL) trade credit insurance with a specific focus on the trade finance sector.
The new team, comprising four experienced brokers, will be headed up by Jonny Carruthers.
Excess of loss traditionally supports strong credit management within large multinational corporates. BPL said with the recent product, technological developments and new underwriter entrants, XoL insurers can provide up to 100 percent cover for financial institutions purchasing pools of receivables, also enabling them to achieve regulatory capital relief under Basel III.
“We are seeing increased demand from our banking and corporate clients for portfolio credit insurance, which is something that has been successfully used over many years by some of the major commodity traders," said BPL Global managing director Sian Aspinall.
James Esdaile, managing director BPL Global, added: "Having a specialist and focused team will allow us to broaden use of the product within the market, tailoring the XoL structure to bolster our individual clients’ credit risk management, while developing the programme to deliver further efficiencies to enhance portfolio growth for both new and existing clients.”
Carruthers said: “We see this as a strong alternative for banks to relying on their clients’ own insurance and a less secure loss-payee position. By having their own insurance policy, banks can obtain regulatory capital relief, eliminate operational risks and improve their advance rate.”
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