One of the main characteristics of credit insurance is its high degree of customization, based on an analysis of the needs of each company and its clients. This is also transferred in the different existing typologies:
- Because of its geographical scope. Traditionally, there were two types of policies: domestic market, to cover activity in the national market, and foreign market, for exporting companies. Globalization has blurred this border, generating a third typology that is currently the most contracted: global policies that cover internal and external operations.
In the current context, there are interior policies with simplified management, aimed at smaller companies, and exterior policies designed for the professional exporter.
- Because of its scope of portfolio. Although there are modalities for a specific operation, the vast majority of the policies that are contracted analyze the entire portfolio, giving comprehensive coverage to the credit sales of the company.
When choosing our modality, we must have an insurer with a strong presence in the markets in which we operate, to ensure adequate knowledge of our end customers. Only in this way will credit insurance be a real ally for the company, not only because it covers such an important risk for any business as non-payment due to insolvency, but especially because it helps companies grow their sales and expand in the market domestic or exterior in a solid and solvent way.
Benefits of credit insurance
- Minimizes the impact of uncollected invoices in three ways: a better selection of clients that reduces the non-payment rate, compensation in the event of default and professional outsourcing of debt recovery.
- Enhances business growth by almost instantaneously providing a guaranteed credit opinion on any potential customer to make a quick decision on whether or not to fulfill their order. The information provide by the insurance company, which can be integrate into the company’s ERP, can win you opportunities against your competition that will give you an additional competitive advantage.
- Warning of the deterioration of the payment capacity of any client. Offering dynamic risk analysis tools and forecasting of portfolio behavior.
- Facilitates synergies between the financial and commercial departments when designing profitable growth strategies through increasingly sophisticated prospecting and filtering tools.
- Grants access to additional consultancy and advisory services on internationalization.
- Increases the ability to access bank financing, by having guarantees of collection of the customer account, and non-bank.
- Improves the efficiency of internal collection management procedures through the parameterization of automatic communications to customers related to the payment cycle.
Functions: Management of Insurance Companies
What does an insurance company do?
The purpose of these entities is to economically protect assets. That may be damage and that are at some risk. For example: a house, a car, and even the people themselves, because there is life insurance. This will guarantee that, if an accident or damage occurs. In terms of what has been protect by insurance. The company will take care of correcting or repairing the incidents. In exchange for this protection, the insurance company requires installment payments from the insurance (quotas or premiums). These fees are calculate by the company once the level of risk of what is going to be insure is evaluate.
As in any company, in an insurance company we find the figure of the General Manager. But what exactly does this professional do in the context of an insurance company?
Let’s summarize what its main functions would be:
- You will supervise each department of the company.
- It will ensure that all financial policies are follow.
- You will be in charge of any strategic business decisions that affect the company.
- You will have to monitor and manage the contracts.
- You must control the financial resources of the company.
- You will need to have a keen eye on analyzing financial market trends.
- He will delegate tasks: the General Director has to determine. Who will be the supervisor of each department to obtain direct reports from them.
- You will need to communicate with the other executives of the company.
- It will be up to you to ensure that business regulations are followed.
- You will have to work to ensure that business goals are met.
- Prepare financial plans.
- Analyze the financial performance of the company.
- You will develop and implement projects: future plans, general business statistics…
- The General Director will have to establish the priorities of the company. Which will be follow by the other employees.
We can say that, ultimately, the CEO of an insurance company (and of any company) will have to be a born leader. Capable of guiding his employees so that the company’s activity is direct towards meeting the objectives set. In addition, you will have to guarantee. That any client who contracts insurance feels as satisfy as possible with the service provided. And that deadlines and objectives are met quickly. Efficiently and with the contribution of benefits.