Willis Towers Watson has launched a new Risk and Analytics model for the trade credit market which analyses clients’ trade receivables to predict potential losses over a range of statistical scenarios.
By identifying the unique frequency and severity of potential credit risk losses within a firm’s receivables portfolio, the model takes a data driven approach to help clients design and structure the most appropriate solutions to help grow sales securely and with confidence.
The model has been designed as a tool for both newcomers to Trade Credit Insurance as well as seasoned users including but not limited to private business-to-business forms trading on open account terms.
The model will also benefit financial Institutions evaluating receivables connected to a borrowing base, receivables purchase program or securitisation, along with Merger and Acquisition activity to evaluate the risk within a target company’s receivables asset
Scott Ettien, Executive Director Willis Towers Watson, said “WTW has a long track record of success in using our R&A platforms to drive additional lines of business by bringing a data-backed analysis to our client’s attention. Our model helps organisations to understand further how Trade Credit insurance can be viewed as a viable risk transfer vehicle for capital substitution.”