We work closely with some of the world’s leading financial institutions in the structuring of comprehensive non-payment insurance (NPI), protecting them against financial loss, balancing their portfolios and managing their capital requirements.
The impact of non-payment insurance on a bank’s capital
Figure 1: The impact of bank non-payment insurance
This is an illustrative example of how bank non-payment insurance helps to reduce regulatory capital based on the client retaining $25 million. In this example, an NPI policy reduces the amount of regulatory capital the bank needs to hold by 60%. This is $6.3 million of capital that can be redeployed elsewhere.
retaining $25 million. In this example, an NPI policy reduces the amount of regulatory capital the bank needs to hold by 60%. This is $6.3 million of capital that can be redeployed elsewhere.
Non-payment insurance contact
The benefits of non-payment insurance for banks
Manages exposures across countries, sectors and obligors
Provides increased lending capacity while complying with internal credit limits
Reduces risk‑weighted assets relieving pressure on regulatory capital and enhancing returns
Improves the predictability of revenue streams from the loan portfolio
Supports distribution or hold strategies
Balance sheet protection – extremely effective risk management tool
Discreet client management tool, allowing proprietary information to be kept in-house
Increases the probability of transaction approval by credit committees
Examples of insurable transactions
- Term loan facilities
- Revolving credit facilities
- Trade and commodity finance
- Project finance/infrastructure
- Pre-export finance facilities
- Asset-backed finance
- Supply chain finance
- Subscription finance
- Derivative counterparty credit risk
Why choose Willis for bank non-payment insurance
At Willis, a WTW business, our team have been delivering time-tested solutions to our clients for 40 years. We have over 200 dedicated staff across 24 countries to support clients with transactional risks globally, providing innovative and comprehensive solutions.
We specialize in providing credit and political risk insurance to financial institutions operating around the globe. We will invest the time to understand client's business in order to provide tailored solutions to mitigate these risks.
Innovation
We have a reputation for innovation and continue to adapt our solutions to meet the needs of our clients.
Experience
The expertise of our team distinguishes us. We recognize the power of thinking differently, that's why our people come from many different professional backgrounds.
Global
We work as one global team, giving you real-time access to more than 60 insurance markets operating globally.
Claims
We have a dedicated claims team available to help you when a loss occurs and have successfully collected more than $1 billion in credit and political risk claims globally since 2008.*
