Insurance’s Benefits

ICIC credit insurance provides policyholders with a wide range of benefits:

  • Protection from financial loss (client receivables) – non-payment of a debt owed by a relatively large client, or a chain of “collapses” resulting from market changes or political events, expose a company to a high risk that could lead to a loss of profitability (to the point of outright losses) and harm cash flow. ICIC’s credit insurance is a first rate financial instrument for managing the company’s risks and protecting against them.
  • Assistance in managing a company’s credit – ICIC has a variety of information sources. As a member of a group of global credit insurance companies, ICIC has access to extensive information from credit insurance companies in other countries. These companies have information on the clients in their countries. ICIC policyholders are given access to this information, thus offering a valuable contribution to the management of the policyholder’s credit. As a member of the EULER HERMES group, ICIC has access to the information network of EULER HERMES, the largest credit insurance company in the world.
  • Meeting precautionary obligations, managing credit and hedging risks – using ICIC’s credit insurance is in line with the legal obligations incumbent on a company’s executives. Credit insurance is a first rate financial instrument for hedging risks.
  • Leveraging credit insurance for financing needs – ICIC offers policyholders a joint program between ICIC and Israel’s large banks and non-banking financing institutions. The financing institution purchases the debt insured by ICIC. The clearest advantages of this program are: increased financing for the policyholder, comfortable financing terms, improved financing ratios on the balance sheet (reducing the receivables line) and the policyholder’s continued management of collection from his clients.
  • Increasing revenues and profitability – credit insurance to certain countries or clients often contributes to increased sales that would not necessarily be conducted in the absence of credit insurance. Thus, for example, ICIC’s credit insurance to Russia, China and other countries enables exporters to increase sales to clients in those countries.
  • Accounting benefits – credit insurance premiums are a tax-deductible expense, whereas provisions for doubtful debts are not. Credit insurance also helps in the process for gaining recognition of revenues, as required by accounting regulations.
  • Improving the policyholder’s rating – ICIC credit insurance is taken into account by the rating companies that assess ICIC policyholders, as credit risk is among the risks that are investigated by the rating companies.