Willis Towers Watson has launched a new risk and analysis model for trade credit. The model analyzes customer trade receivables to predict potential losses over a range of statistical scenarios.
The model provides an assessment and allocation of risk across an overall portfolio, region, business sector and individual buyer; the probability of expected default losses on a portfolio basis; and a breakdown of risk exposures by sector and geographic area. Fully customizable credit insurance ROI calculations look at the cost of premiums against expected sales and losses.
By identifying the frequency and severity of potential credit risk losses within a company’s receivables portfolio, the model takes a data-driven approach to help clients design and structure solutions to safely increase sales. confidence.
It is designed for both newcomers to the credit insurance business and seasoned users and is intended for a variety of purposes: private business-to-business forms trading on open account terms, financial institutions assessing claims against a borrowing base; debt buyback program or securitization; and merger and acquisition activity to assess risk within a target company’s receivables assets.
Scott Ettien, Executive Director Willis Towers Watson, said, “WTW has a long track record of success in using our R&A platforms to drive incremental business by bringing data-driven analysis to the attention of our clients. Our model helps organizations better understand how credit insurance can be considered a viable risk transfer vehicle for capital substitution. »
risk, credit, trade, insurance, reinsurance, claims, forecasts, investment, premiums, solutions, Willis Towers Watson, WTW, North America