Non-Payment Insurance for Banks

Non-payment protection as a bank eligible product

Over the last two decades NPI has developed into a key risk distribution tool for banks and financial institutions. By protecting policyholders against the financial consequences of default by a counterparty – whether borrower, guarantor or otherwise – our clients are able to assume credit risk with greater confidence, grow their positions, secure mandates and manage their own capital. Through NPI, a portion of the credit exposure is insured by either one or a syndication of insurance companies and/or Lloyd’s syndicates, thereby giving the policy holder greater certainly as to the ultimate servicing of the debt, to the extent insured.

We transact with more than 50 insurers who carry a minimum credit rating of A- with the majority A+ or better*. Thus, for a qualifying policy, our clients are able to reduce their requirement to hold capital with respect their credit exposures, by considering the rating of the insurance company in place of that of the original counterparty.

How does Gallagher provide credit insurance for banks?

Our specialist team at Gallagher will adapt protection to your specific needs, helping to reduce your credit exposure throughout the lifetime of a transaction.

For short and medium-term, familiar lending classes underwritten include trade and commodity finance, supply chain finance, export finance – particularly commercial tranches sitting alongside ECA backed loans, FI lending, sovereign lending and general corporate facilities. However, with the relaxing of regulation supporting this underwriting activity, commercial insurers are now able to consider a far broader array of financing, which is just limited by insurer appetite.

For the longer term (which in some cases can even mean up to 20 years), Commercial insurers are able to cover asset-backed financing for industries such as energy, aviation and real estate, as well as portfolio growth and diversification, and off balance sheet items. The diversity of our book means we understand risk from many different perspectives, enabling us to provide greater levels of strategic insight.

The Gallagher team

Our Structured Credit and Political Risk team provides solutions to banks and financial institutions in the UK, Europe and beyond. Our team will help you use this key cover as a commercial tool, not just a risk management product, giving you the freedom and opportunity to be more competitive in your business activity. Our dedicated team (including those drawn directly from the banking sector) has extensive experience, which means you will have the benefit of the level of expertise and understanding that this market demands.

End to end service and process

We work through the entire process with you, from structuring and placement to claims management. Our claims team are very experienced in settling claims in this product class yet those actively engaged in the placement of your transaction also remain involved.