Credit risk confirmation is a necessity in a day and age where globalization is the main frame.
Bank Risk Insurance
Bank Risk Confirmation insurance protects the Confirming/Discounting banks against nonpayment of trade documents by issuing banks. 90% of the risk is covered and these policies can be scripted for single/multiple transactions from the same bank and/or the same country.
How does it work?
How do we help in bringing solutions to Bank/FI’s?
Prowess advises on Risk Mitigation for Lenders/ FI’s by assisting treasury teams in identifying the possible ways of reducing risk weighted assets. Depending upon the portfolio of risks and possible combinations of insurance solutions; we work in tandem with select insurers on the best possible bespoke cover. In the Insurance Industry, Prowess deals with A+/AA rated Re/Insurance companies in the world thereby bringing quality to every transaction. These solutions/products enable Banks/FI’s to take Capital relief under the prevalent BASEL norms.
What does it cover?
Risks covered include business failure of issuing bank, protracted default by issuing bank, political risks in the issuing country such as expropriation, confiscation of product/service under the contract, war, riots, prohibiting converting of currency.
Products offered
Portfolio Insurance
Premiums could be fixed/flexible with a minimum commitment fee and a pay as you go option as well.
The policy wordings are Basel 3 compliant and hence offer an immediate capital relief on the required capital adequacy clause