Who says there are no new frontiers in insurance? The economic crisis, coupled with a greater emphasis on exporting, has rekindled interest in an underutilized insurance product which also presents an exciting new opportunity for agents: credit insurance.
Although most companies' largest assets are their accounts receivables—the money owed them by customers—few bother to protect themselves against the risk of customer default or insolvency. Yet for many companies, if just one major customer was to default or go bankrupt, it could spell their own doom. Indeed, the risk of a serious or even ruinous default by a customer is more likely than theft, fire or flood.
Despite this very real peril, only about 1 in 10 American companies buys credit insurance, compared with more than 50 percent of European companies. But since the beginning of the economic crisis, interest in credit insurance has reached an all-time high.
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