Pinnacle Protector provides protection against the risk of customer insolvency in South Africa and for most trading countries around the world.
Companies are now able to credit insure selected debtors, taking the credit risk themselves on less risky customers, reducing the overall cost of credit insurance.
Currently, local insurance companies offer blanket cover on debtors, requiring their clients to take credit insurance on low risk customers as well.
"While many companies prefer to operate in this manner, some organisations prefer selective cover. This product offers the flexibility to tailor a solution to meet customer-specific needs," says Coface executive director Michael Creighton.
Creighton says, as a first for South Africa, Pinnacle Protector has been used for some time worldwide, and is therefore tried and tested.
Customers choose the specific debtors they wish to insure, setting their desired level of exposure to suit their credit insurance budget. It can also be extended to include pre-shipment cover.
It is an annual policy and the premium is calculated on estimated annual turnover for each named debtor. The fee is payable bi-annually, quarterly or monthly, and an adjustment is levied, based on actual turnover at year end.
The insurance covers insolvency, and because of the reduced policy costs, clients are responsible for their own collection and legal fees.
"The premium paid is all-inclusive with no hidden costs. The pricing is competitive and has the backing of Coface as an international company rated AA Fitch and Aa3 Moody`s," says Creighton.
The insured percentage can be increased to 90% on a case-by-case basis, involving a simple, low administration declaration procedure. Maximum liabilities are substantial.
Pinnacle also provides enhanced credit control facilities, with online limit management that can be used to strengthen existing credit control procedures.
"Complementing the product is the access Coface provides to detailed information on 50-million companies worldwide," says Coface Creighton.
"By tapping into this pool of corporate and financial data, Coface offers critical information on customers, markets and prospective clients," he says.
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Founded in 1946, Coface, rated AA by Fitch and Aa3 by Moody`s, is a subsidiary of Natexis Banques Populaires and Groupe Banque Populaire whose share capital (Tier 1) was 14.63 billion euros end 2005. Coface`s mission is to facilitate global business-to-business trade by offering its clients four product lines to fully or partly outsource trade relationship management and to finance and protect their receivables: credit insurance, company information and ratings, receivables management and factoring. Coface also offers three other business lines: guarantee insurance, receivables management training, and, in France, management of government export guarantees. Coface operates a quality local service for its 85,000 clients thanks to its 4,850 staff in 58 countries where Coface has a direct presence. This local service also covers in 93 countries via partners in the CreditAlliance worldwide network, organised around an integrated credit risk management tool, the Common Risk System.
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