The Hindu Business Line : Credit insurance market seen to touch Rs 763 cr

FOCUS ON SMES: (From left) Mr Gerd-Uwe Baden, Member of the Management Board of Euler Hermes; Mr Clemens vom Weichs, Group Chairman; and Mr Praveen Gupta, GM, Bajaj Allianz General Insurance, at a press conference in Mumbai on Thursday. - Paul Noronha

Mumbai , April 13

Euler Hermes, a member of the Allianz group, has projected a business potential of 140 million euros (Rs 763.5 crore) in the next five years, from the Indian credit insurance segment.

Mr Clemens von Weichs, Group Chief Executive Officer, Euler Hermes, said: "The credit insurance market currently has the potential of 35 million euros annually (Rs 190.8 crore). But in the next five years, we see this figure growing to 140 million euros".

Credit insurance provides cover against non-payment of trade receivables.

Euler Hermes had tied up with Bajaj Allianz General Insurance eight months ago to offer its domestic and export credit insurance products in India.

Companies with a turnover of 2-10 million euro per year are the target segment. Euler Hermes is now looking at tapping the SME segment in India to offer their credit insurance products.

The company will be assisting Bajaj Allianz General Insurance to provide tailor made credit insurance products for the SME sector.

Mr Praveen Gupta, General Manager, Bajaj Allianz General, said that the company would be launching more products from the global portfolio of Euler Hermes and customise them to the needs of the Indian export and domestic credit markets.

Bajaj Allianz General has so far written 10 policies and raked in Rs 2.5 crore as premium from the credit insurance segment. In India, credit insurance is mainly being pursued through bank tie-ups.

Banks, which offer loans to companies, recommend the purchase of credit insurance.

Mr Weichs said that while around 40 per cent of the MNCs across the globe opted for credit insurance, only 1.5 per cent of the SMEs purchased the cover.

Euler Hermes, which has the global market share of 34 per cent in credit insurance, has a data base of 40 million companies across the world.

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