The markets benefitting from this offer vary hugely in terms of XoL familiarity and maturity.
Germany, for example, is a very interesting case. There are very few XoL actors in Germany, largely because the filing requirements for financial statements are comparatively low. As a result, it’s challenging for companies to obtain the necessary information to develop robust internal credit management. Companies in Germany – such as its network of large multinational manufacturers – therefore benefit both from Allianz Trade’s XoL insurance and our extensive database of buyer information. It’s a win-win scenario that only we offer.
At the other end of the spectrum, you have APAC. Trade credit insurance (TCI) doesn’t have the same historic foothold here as Europe and North America, even less so XoL. In new markets like this, we sometimes see resistance to XoL due to the large risk share element. Being risk-averse is a great position to take in any business practice, but for companies that currently have no insurance at all, the math doesn’t add up.
Part of the effort to expand Allianz Trade's Excess of Loss offer into new markets is focused on changing mindsets. We want to emphasize that assuming responsibility for an aggregate first loss is far less hazardous than taking it all on alone. Ultimately, these policies offer huge benefits. Companies can enjoy high levels of trust and autonomy, avoid claims that could significantly affect their balance sheet and are empowered to make their own credit decisions. All with the knowledge that they have coverage if they need it.