Our alternative credit insurance team at Willis, a WTW business, provides structured credit insurance solutions tailored to meet the needs of:
- Non-bank financial institutions
- Funds (with a focus on private credit)
- General partners, and
- Limited partners (including NAIC & Solvency II Regulated Investors)
- Banks (in collaboration with our Financial Institutions coverage team)
Key benefits of our tailored credit insurance solutions
Credit risk insurance protects against the non-payment of a financial obligation by an obligor pursuant to the terms of a loan, note, bond or derivative.
Benefits to the purchaser/insured include one or more of the following:
- Mitigation of credit risk on a confidential basis (not disclosed to obligor)
- Enhancement of risk adjusted returns
- Optimization of economic and/or regulatory capital
- Management of limits (obligor, sector, geography)
- Expansion of risk distribution end markets
- Discrete partnership
Solutions can insure a single exposure, as well as pools and portfolios on a vertical or horizontal tranched basis. Insurers are typically rated from A- to AA and are diversified property and casualty insurers and reinsurers.
Insurable risks
Our alternative credit risk insurance solutions cover a broad spectrum of industries, asset classes and markets including:
- Senior direct lending
- Large corporates
- SME
- Project finance (infrastructure, energy, utilities, renewables, telecommunications, data centers)
- Asset-based loans (aircraft, ships)
- Emerging market - sovereign guaranteed
- Select commercial real estate (CRE) - single asset & portfolio
- Select CRE - single asset & portfolio
- Broadly syndicated loans (BSL) and middle-market (MM) collateralized loan obligation (CLO) tranches
- Significant risk transfer (SRT) tranches
- Trade receivables securitizations
- Feeder funds
- Separately managed accounts
- Subscription/capital call facilities
- Hybrid facilities
- NAV facilities
- Emerging market – sovereign
- Corporate bonds
- Derivative counterparty credit risk
- Insurance of indemnity reserves
- Counterparty credit risk
- Counterparty credit risk
- Voluntary carbon market projects
- Compliance market credit risk
