Euler Hermes, Bajaj Allianz tie for SME covers

Euler Hermes, the world's largest credit insurance company with a 34 per cent market share, has tied up with Bajaj Allianz General Insurance Company to offer domestic and export credit insurance in India.

Euler Hermes' role will be to help Bajaj Allianz offer tailor-made credit insurance products for SMEs. The credit insurance will help SMEs to have access to cheaper finance. Bajaj Allianz has thus far sold 10 large credit insurance policies in the last 10 months.

Clemens Von Weichs, group chairman of Euler Hermes said, "Credit insurance is not yet very common in India. In the Asian context, India is seen as a promising country."

About a survey on global insolvencies by Euler Hermes, Weichs said, "Our proprietary global insolvency report indicates that bankruptcy is on the rise. As a result of the slowdown in the world economy (just 3 per cent growth), there is a clear change in the trend of business casualties in 2005. The 2006 outlook confirms this trend. After 3 years of decline, business failures will start to climb again in the countries that drive the world economy."

"Our experts monitor 40 million companies throughout the world and share information in real times on a unique integrated software platform. Today we provide answers to 80 per cent of our clients credit demands within 48 hours," Weichs added.

Euler Hermes' insolvency report stated that the US has seen a rise in bankruptcy filings in the last quarter of 2005. In the UK, insolvencies increased by 9 per cent in 2005. In India, New India Assurance and ICICI Lombard are already into providing credit insurance services.

The government-owned Export Credit Guarantee Corporation of India is into insuring exports.

Praveen Gupta, general manager, Bajaj Allianz said, "We will be launching more products from the global portfolio of Euler Hermes and customise it to Indian requirements and to the needs of export and domestic credit markets."

Clemens von Weichs also said, "We opened a representative office in Russia in partnership with a local major insurer, Rosno. India has had long ties with Russia. I am confident that Indian exporters to Russia can gain from our expertise and secure their risks."