Mitigating risk amid disrupted supply chains:
A guide for businesses
Q&A with Danny Ismail, Head of New Business at Nexus Trade Credit
Who are you and what do you do?
Hi, my name is Danny Ismail, I’m the Head of UK New Business at Nexus Trade Credit and have been in the Credit Insurance Industry now for just shy of 16 years.
How has 2024 started for Nexus Trade Credit New Business?
It’s been a solid start to the year for the team. In what continues to be a soft market, despite
increased claims and overdues, we have been able to provide solutions to many new and existing customers via our broking partners. We can always do more, and we will continue to push hard as we go into Q2 and the rest of the year. There is still a lot of uncertainty out there in the world, and with heightened risk comes opportunities.
What makes Nexus Trade Credit different in a very competitive market?
At Nexus we are lucky to have multiple product lines at our disposal, allowing us to be a ‘one stop shop’ for all trade credit risk cover needs.
Tell me more, what cover can you offer?
Well firstly, we have our monitored risk offering. This is the most common form of Credit Insurance within the industry, and it allows the Underwriter (Nexus in this instance) to monitor our policy holder’s ledger and advise of any changes in circumstances in their customer strength and warn them away from trade where appropriate, along with encourage growth where possible.
Secondly is our Non-Cancellable cover offering, which does what it says on the tin. Whilst we will always provide our customers with the information we find and/or are made aware of, the limit is valid for the entirety of the policy period. Therefore, our policy holder is in control of the monitoring of their customers.
Finally, we offer Top Up policies. As a market, whilst still ‘soft’ in pricing, capacity issues have started to appear and our top-up product allows our policy holder to increase their existing cover held with their incumbent underwriter, to cover their current needs and increase their access to finance where relevant. We’ve done really well with this product in our European offices, and we’re seeing better uptake in the UK now too. The market seems to be more set-up for selling Top-up cover – with servicing brokers increasingly putting it front and centre for clients that have restricted coverage.
Are there restrictions on any of these products?
Generally, we would consider Non-Can for a more stable business with a sophisticated credit control set up, but if it’s a product that the customer or their broker thinks will suit and work for them, we would absolutely consider it. There’s no company size restrictions, we will be able to consider the product for any sized business, on its own merits. We are also able to structure the policy to suit the individual circumstances, be it ground-up or with a risk share.
In terms of Top Up cover, we will match the incumbents wording. In effect there will be two policies with two lots of cover, but only one underwriter, the incumbent, who will also manage both policies for you. If the existing policy is Monitored or Non Can, we can consider both for Top-Up. Our limit coverage moves in line with the existing cover.
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Plans for the rest of the year?
Continue with the same strong trajectory. Last year’s investment in the Manchester office continues pay dividends; we’re investing in the team and systems – looking to make life easier for clients and brokers in the region. We will continue to offer solutions that work for clients and support the growth of both our policy holders and broking partners.