4 December 2007
Aon Trade Credit UK negotiates £1.2m claim for Toshiba on underwriters Euler Hermes UK in five days.
Leading insurance broker and risk management consultant Aon has handled the settlement of a £1.2 million trade credit claim for electronics company Toshiba in just five working days. A claim of this size would typically take around two months to settle.
When one of its major customers went into liquidation owing the company £1.2 million, Toshiba met with Aon to discuss the claim on its trade credit policy. Matthew Tuckey, claims executive at Aon, handled and submitted the necessary documentation to the insurer Euler Hermes within days of being
notified of the claim. Regular communication between Aon, Toshiba and Euler Hermes ensured everyone was kept informed and, as there were no contentious issues, the claim was paid in full within five working days of being submitted to the insurer.
Roger Bamber, director at Aon Trade Credit, said: “Toshiba’s case illustrates the need to protect against bad debt. Having up-to-date and well-researched information on existing and potential trading partners is paramount to understanding the risks of non-payment. On the occasions that a claim cannot be prevented, the insurance market can provide protection against supplier default. Price wise, premiums are competitive at the moment so it's a good time for companies to review their position.”
Paul Flanagan, director of risk at Euler Hermes, the underwriter on the case, explained: “We know Aon and Toshiba very well, which gave us the confidence to settle the claim as quickly as possible. For example, we didn’t need to undertake the usual third-party claims inspection, which saved a lot of time. Having a strong tripartite relationship was the key to getting a claim of this size paid with such remarkable speed.”
Stephen King, Group Credit Manager at Toshiba, added: “We’re very grateful to our broker Aon for its co-operation in settling the claim within five working days of its submission.”
