How have your operations been in the Middle East grown over the past few years?
The IT distribution channel is a fast growing clientele for Euler Hermes especially in the Middle East. We are involved in the Middle East for years. Recently, we have opened an office in Dubai in collaboration with Alliance Insurance in order to provide a better service to our clients. We are able to underwrite Risk and Commercial from our Middle East office which makes a real difference. We strongly believe in local service.
As a start, we are already able to issue policies in KSA through our sister concern, Assurance Saudi Fransi and Qatar through our partner Qatar Insurance Company and we are planning to be able to issue policies in all GCC countries by the end of the year.
How important is credit insurance in business? Do you see more companies realising the need for credit insurance in the region?
Credit Insurance is very important as this is the best way to protect a company against bad debts. Also, banks like to know that their clients are covered especially when they give them credit facilities. A bank generally asks us to endorse the policy in its name.
We are witnessing a really impressive increase in the demand especially in the IT field.
What would be the guidelines that you set for ensuring credit worthiness of companies and any particular highlights from your dealings with the IT clients?
Our Risk team is working in a very professional way: we are mixing staff having a Euler Hermes background and staff with a Middle East background (Bank, Insurance). Both experiences are very important. The IT field is more and more mature but of course, claims occur.
Do you insure resellers as well? How does it differ from the coverage for distributors?
Yes we do provide that but that is strictly only meant for B2B sales. We do not make a difference in the way we analyze the Risk.