Credit risk management is knowing about the people you currently or wish to deal with in the future, and the service includes credit checks, setting monitoring and reviewing credit limits, making sure you have identified the correct entities, maintaining payment terms and provision of mercantile reports. There are many avenues available and we can advise on ‘outsourced credit departments ‘. Credit risk management is vital in substantiating discretionary limits which are encountered under many credit insurance policies.
Should a business wish to provide protection for a specific event and /or achieve premium savings, one method used and recommended by Rodney Mathers Consultancy is via an existing captive insurance company. The costs involved in establishing a single parent captive expressly for the insured are high, so the recommended route is via a captive cell within an existing captive company which insures the specific risk. This insurance is a legitimate tax deductible expense, the captive returns any underwriting surplus and investment income to the insured owner’s and this arrangement also allows for re-insurance to be arranged via the captive who negotiates stop loss cover for the owners.
Rodney Mathers Consultancy will examine your risk profile and recommend an appropriate program.
The problem with all of the smaller operations is that they are treated as such by insurance underwriters, with higher premiums and more restrictive covers. However a superb method of achieving the fantastic economies of scale that larger entities enjoy, is through the formation of a specific industry sector insurance co-operative via a private limited liability company, where participating shareholders strengthen and enhance their insurance risk positions by virtue of their combined size. This results in reduced premiums, wider coverage and self determination. Rod Mathers has been instrumental in the formation of these types of entities and welcomes enquiries from any industry body or general insurance brokers.
Good credit management should ensure that most customers pay on time, but you will inevitably have to deal with collections from time to time. We are happy to advise and make recommendations on collections for problem customers around the world so please don’t hesitate to contact us no matter where the unpaid debt may be located. This is a very competitive area so good advice in this regard is of paramount importance.
Our involvement with policy audits started several decades ago when ‘Like for Like’ policy comparisons were common place. Now days we constantly witness displays of gross negligence when credit insurance covers are arranged by the untrained and unskilled, and as a result we witness many very poorly crafted and risk rated policies. The method Rodney Mathers Consultancy employ is to firstly understand the clients modus operandi, as this provides us with a working understanding of their operation; then if the clients are already insured, we will carry out an in depth study of the existing policy and from that point forward can make recommendations as to the required improvements.
If on the other hand no policy is in force, we will likewise analyze the risks; make recommendations as to the mitigation measures required including self insurance captive options.
Once the forgoing has been carried out and we have gained an understanding of the client’s risks, we can then provide ‘Ball Park’ premium costs that would be charged to eliminate or reduce their risks.