Coface, global credit insurance leader and Oman Insurance Company (P.S.C.), the Dubai-based leading insurance provider in the UAE, have signed a partnership agreement to offer joint credit insurance solutions.
Increased awareness of the benefits of credit insurance – solutions that protect companies’ accounts receivables from loss due to customer payment defaults – has caused a surge in interest for the product in recent years. The credit insurance market is undergoing a quick expansion in the UAE and overall GCC, and the market now exceeds AED 100 billion of insured transactions as of 2014, with double digit growth predicted for the next three years
“Playing a pivotal role in global trade, Coface has noticed a stark increase in demand among Gulf companies for trade finance and risk transfer solutions for their open accounts trade transactions. Through our partnership with Oman Insurance, Coface now offers these companies not only trade credit insurance protection, but also trade finance and collection solutions in the UAE, Qatar and Oman,” commented Gregory Le Henand, Coface Emirates, Country Manager.
On the back of strong infrastructure spending, competitive funding terms from local banks and favorable tax regimes, the partnership signing comes as the UAE exports over 70% of the goods transiting locally to Asia and Africa, with 8% growth estimated in 2014, making trade credit insurance an increasingly in demand financial product.
Patrick Choffel, Chief Executive Officer of Oman Insurance, explained the vision behind the agreement: “This long-term partnership is creating synergies and value for our clients, and will consolidate our leadership position. Associating our network and 40 years of experience in life and non-life insurance solutions with Coface global trade credit expertise provides GCC companies unique coverage solutions that now includes coverage of payment default risk for their local and international customers.”
Massimo Falcioni, CEO, Middle East Countries, Coface said: “In line with our regional expansion strategy, our partnership with Oman Insurance will benefit companies of all sizes across our joint network, as we aim to support SMEs and corporations trade and export business. We are seeing strong growth momentum across the Middle East on the back of robust non-hydrocarbon activities and large budget surpluses – prompting encouraging forecasts of trade in and out of the region.”
The joint insurance solution on offer from Coface Emirates, the Coface GCC headquarter, and Oman Insurance, is now available to companies in the UAE, Oman and Qatar, covering both domestic and international trade transactions.