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Aon Credit Solutions

Aon Credit Solutions

The Aon Credit Solutions practice is a global leader in formulating tailored risk transfer solutions that address domestic and international trade risk.

Our comprehensive approach encompasses a combination of insurance and surety solutions that:

  • Mitigate non-payment, political, and contract performance risks
  • Optimize working capital utilization
  • Bridge trade finance constraints to maximize access to financing
  • Enhance credit management function to accelerate revenue growth

Our experts of over 500 specialists around the globe place more than 30 percent of global trade credit premiums worldwide and operate in over 57 countries. Supporting over $770 billion in ongoing trade transactions our designated professionals have the expertise to respond rapidly to risk in highly volatile trade environments. Our objective is to be regarded by our clients as their trusted trade risk advisor by fulfilling the Aon Client Promise.

Trade Credit Insure

Trade credit insurance or accounts receivable insurance is a solution that indemnifies a seller against losses from non-payment of a commercial trade debt arising from either the bankruptcy or slow payment of a buyer. Learn More.

Why Aon Credit Solutions?

 
  • Local presence
    Aon’s global Credit Solutions network connects you with the best insurance knowledge and markets in the world. As a result of placing more premium with insurance carriers, we can combine our global strength to get you better insurance coverage, stronger advocacy and faster resolution of claims. We also harness our worldwide presence to help companies expand into emerging markets.
     
  • Globally connected
    Industry specialists teams provide key updates on sector specific risks, political risk and market capacity trends in both the domestic and international markets you are expanding. As one Aon, our global presence enables us to coordinate complex multinational programs with standardization of policy terms centralized in a country of your choice, or decentralized with assigned local representation around the globe.
     
 

 

Case studies

International producer of food products
Background
  • Significant credit concentration on largest 10 counterparty exposures
  • New orders were restricted to manage credit risk
  • Desire to increase sales to counterparties without increasing credit risk position
Solution
  • Implemented an excess of loss coverage solutions to remove new order restrictions by transferring the additional credit risk to an insurer
  • Negotiated non-cancellable coverage limits to offset concerns of a deteriorating retail sector (non-cancellable limits = certainty of cover for key buyer exposures)
  • The producer was able to accept additional orders, increase their revenue and grow their business
Large underground mining contractor
Background
  • Domestic and export exposures on both profit making & non-profit making mining exploration projects
  • Substantial political risk related to export credit exposures
  • Working capital with lender was restricted due to credit risk uncertainty of each counterparties
Solution
  • Secured non-cancellable coverage limits on difficult to place credit risk exposures
  • Mitigated political risk by trade credit endorsement and expanded scope of coverage through a comprehensive political risk policy
  • Credit risk transfer to an insurer enabled lenders to increase A/R margining by as much as 20% adding access to new working capital to be reinvested in their business
Large energy client
Background
  • Needed to make a significant investment in infrastructure to move a commodity from point A to point B
  • The transportation service agreement was a 2-year term
  • The client was concerned about the producer's possible insolvency during the 2-year term which would hinder the ROI for the infrastructure required
Solution
  • Non-cancellable trade credit insurance was deployed for the short-term credits that materialized from the transportation service agreement
  • A performance surety solution was deployed to ensure the producer would be able to provide the commodity to be transported
  • The client gained peace of mind with respect to the ROI for the infrastructure expenditure and was able to complete the transaction thereby growing their business

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