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Treatment of Credit Insurance in Banking Rules

The relationship between credit insurance and banking is an important and growing one. Banks value the protection credit insurance provides to their clients against non-payment risk, as well as the resulting capital relief banks gain from this. While credit insurance is a recognised credit risk mitigation technique under Basel rules, its treatment in banking regimes around the world does not always recognise its security, nor its value to banks.

ICISA seeks to inform the public debate about the role of credit insurance in banking and its value to banks as a Credit Risk Mitigation technique. To achieve this we work independently and in partnership with other associations to provide evidence and analysis about how the product works, the security and strength of the sector, and the work of our members in supporting financing around the world.

As rules for banks evolve with the implementation of Basel IV around the world, ICISA engages closely with regulators in the EU and elsewhere to ensure that credit insurance is appropriately recognised within regimes. Our efforts in this area have included:

  • demonstrating the stability of the credit insurance sector under the Solvency II regime;
  • advocating for improvements in the treatment of credit insurance as a CRM within EU rules; and,
  • contributing to wider industry efforts to demonstrate the key role credit insurance plays within important parts of the banking sector

For more information in our work in this area, contact Daniel de Burca.

Latest news on banking rules
News Trade Credit Insurance Banking Rules Insurance Regulation
Important developments in treatment of credit insurance under EU banking rules
3 Mar 2022
Credit insurance is an important tool used by banks in certain trade-financing arrangements to mitigate their credit risk exposure.
More info
News Asia committee Surety Banking Rules ESG Insurance Regulation State Aid Tech & Innovation
India publishes guidelines for surety market
11 Jan 2022
The Insurance Regulatory and Development Authority of India (IRDAI) published finalised guidelines on 3 January 2022, setting out for the first time, rules governing surety business in India.
More info
See all news on banking rules
Latest publications on banking rules
Regulatory Sub Committee Single Risk Committee Trade Credit Insurance Correspondence Banking Rules
30 Aug 2019
Regulatory Sub Committee Single Risk Committee Trade Credit Insurance Meeting Paper Banking Rules
30 Aug 2019
Regulatory Sub Committee Single Risk Committee Trade Credit Insurance Consultation Response Banking Rules
30 Aug 2019
Regulatory Sub Committee Single Risk Committee Trade Credit Insurance Meeting Paper Banking Rules
30 Aug 2019
See all publications on banking rules
Any questions on the topic?

If you want to know more about this topic, feel free to contact us.

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Daniel de Búrca
Daniel de BúrcaHead of Public Affairs
daniel.deburca@icisa.org
+31 (0)6 57 396 020