Members of the Receivables Insurance Association of Canada (RIAC) have collaborated on a new reinsurance product that provides additional credit capacity to private credit insurers in Canada amid the COVID-19 pandemic.
RIAC members Export Development Canada (EDC), Euler Hermes, Atradius, Coface Canada, and The Guarantee Company of North America have partnered on the launch of Trade Partnership Insurance (TPI), a select buyer reinsurance product.
The new reinsurance product is designed to provide Canadian private credit insurers with additional credit capacity to support Canadian businesses impacted by the COVID-19 pandemic.
Specifically, RIAC member brokers and other credit insurance brokers will now be able to enhance their servicing of Canadian businesses through receivable insurance policies underwritten by RIAC member insurers leveraging the TPI reinsurance capacity.
This new TPI assistance product has been mandated by the government and is enabled by EDC, which provides a backstop to excessive losses from claims experienced by private sector insurance firms.
“This is a tremendously valuable outcome of the process RIAC began back in March with a letter to Finance Minister Morneau. RIAC members worked tirelessly putting together a viable program that will support Canadian businesses as they struggle with the challenges brought on by the COVID-19 crisis,” said Mark Attley, President of RIAC.
As noted, this public-private sector partnership is the result of a collaborative effort between the Government of Canada, EDC and RIAC that has been in the works since early March.
As the COVID-19 pandemic has unfolded and accelerated, continuing to severely impact economies and societies in all corners of the world, increasingly, public-private partnerships are being explored as it becomes clear that no one party can tackle this alone.