Reinsurance News

Canadian government mandates reinsurance product for private credit insurers

11th May 2020 - Author: Luke Gallin

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.

canada-flagRIAC 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.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
White Mountains reports $132 million Q1 loss

White Mountains Insurance Group, Ltd. has reported a loss of $132 million for the first-quarter of 2020, driven by net...