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Top up cover coinsurance – Streamlined processes

Issue date: 
Monday, 4 May 2020

In partnership with four of the primary trade credit insurers operating in New Zealand, the Treasury’s New Zealand Export Credit (NZEC) has streamlined its assessment process for its “top-up cover” coinsurance.

To apply, please complete:

this form (if you are an exporter); or  

this form (if you an integral supplier to an exporter).

Trade credit insurance protects a business from losses arising from unpaid invoices, including as a result of a buyer’s bankruptcy.

NZEC's “top-up cover” arrangements provides additional cover to ensure that New Zealand exporters and their integral domestic suppliers can trade with confidence.

Under each arrangement, an eligible business is able to obtain an additional layer of trade credit insurance directly from NZEC. This may either replace primary cover that an insurer has partially withdrawn on a buyer, or provide a top-up layer of cover where an insurer has only partially approved the buyer limit that has been requested.

NZEC will apply a streamlined assessment process for top-up cover requests, which match their primary insurer’s limit, and are up to a $1 million additional limit.  For limits above $1 million, NZEC will apply its normal process which includes obtaining a buyer’s financial statements.  NZEC will also apply a commercial risk premium on each top-up policy.

An important eligibility criteria is that the primary trade credit insurer must first consent to a business seeking top-up cover. 

This arrangement can support an exporter’s sales to its foreign buyers, as well as domestic sales of goods and services that are integral to the delivery of New Zealand exports

The top-up cover arrangement complements NZEC's short-term trade credit insurance, which provides insurance on creditworthy buyers where the private sector is unable to provide any cover. 

For the contact details of the participating trade credit insurers, as well as specialist brokers, visit here.

 

Last updated: 
Monday, 4 May 2020