Börse Express – Real-time trade credit insurance for B2B internet business

Aon, Munich Re and WALBING Technologies Introduce “Built-in Trade Credit Insurance”

Vienna (OTS) – Online trade in the B2B sector is booming. However, there are also some challenges as companies work with new customers and suppliers on a daily basis. The supplier does not want to deliver anything before payment and customers want to pay less and less upfront, according to the study “B2B E-Commerce 2020 – Status quo, experiences and prospects” by ibi research at the University of Regensburg and the study “Payments and financial processes in B2B E-Commerce “(January 2021). Suppliers therefore need protection in case the agreed payment is not made. In the Internet business, the customer structure is often unstable, customers are new and only buy Traditional trade credit insurance comes into play Limits and would have to be complemented by new additional e-commerce solutions to enable customers to shop online with payment terms from 30 to 90 days (“Buy Now, Pay Later”).

For this reason, global service firm Aon, through its One Underwriting subsidiary Great Lakes Insurance, a subsidiary of Munich Re and Hamburg-based FinTech WALBING, has jointly developed a new invoice-based trade credit insurance solution designed specifically for the B2B eCommerce business judge.

This is how the solution for customers works

B2B platforms easily integrate insurance protection as the so-called embedded insurance solution. In the future, it is enough to register at [B2B Plattform von WALBING] (https://www.walbing.com/) and then to use the APIs of WALBING’s proprietary Sanya platform.

Why do B2B platforms need commercial credit insurance?

Trade credit insurance compensates for losses when customers do not pay their bills. In B2B business, invoices are often issued for large-value orders. These orders can only be accepted by the seller if the customer is willing to pay in advance or has a credit line with the insurer. In an online business, however, insurance coverage must be available immediately, i.e. in real time – when the customer decides to buy. The innovative solution of Aon / One Underwriting, Great Lakes Insurance / Munich Re and WALBING enables just such insurance coverage in real time.

The insurance guarantees the financing of the supplier’s loan in the event of an advance payment by the supplier. This type of insurance also works well for third party financing. This means that the insurance cover can also be transferred to investors if the supplier later decides to sell the receivable from his invoice as part of debt financing via WALBING.

Protection also for previously uninsured investors

Investors such as banks, factoring companies or alternative investment funds who invest in B2B receivables via WALBING’s Sanya platform have the option to pre-select unfunded receivables and then buy them, including insurance coverage. B2B receivables have developed into a distinct asset class in recent years due to their characteristics such as attractive rates of return, low default rates, short periods of capital commitment, self-liquidation, lack of correlation with other asset classes, and direct and sustained support to the real economy, and they are increasing greater importance among institutional funds.

Dr. Kai Engelsberg, Board Member of Aon Credit Solutions Germany, says: “Today companies want to grow online. Thanks to this initiative, we will be able to offer insurance cover where it is needed in the core business of our clients. Merchant Credit Insurance Solution To our partners, and we have succeeded. In a time when digital transformation creates new forms of volatility, companies can now also safely operate online and scale without interrupting their “user journey”.

Andreas Moser, Head of Embedded Trade Finance Solutions at Munich Re, says: “With our TALARIA solution we are opening a new“ digital ”chapter in credit insurance. Thanks to the newly developed scoring engine, based on Munich Re’s expertise in credit insurance, but also in the areas of data analytics and machine learning, we can implement single bad debt coverage in “real time”.

Jörg Hörster, CEO of WALBING Technologies, says: “Built-in real-time credit insurance is a piece of the mosaic that was lacking in both the digital B2B market and the debt purchasing market. We are delighted that our Sanya platform with Embedded Trade Credit Insurance offers both markets the potential to scale. ”


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Aon Disclaimer

This media information contains forward-looking statements based on current assumptions and forecasts. Known and unknown risks, uncertainties and other factors may mean that Aon’s actual development, in particular its results, financial condition and business, differ materially from the forward-looking statements made here. Aon is under no obligation to update these forward-looking statements or to adapt them to future events or events.

About Walbing

WALBING improves the B2B business. The company was founded in 2019 with the aim of simplifying and accelerating international business. At WALBING, we believe that financial, payment and insurance services should be provided when and where they are needed. We design our solutions to make financial services easy to use, simple and effective. Thanks to our Sanya platform, we offer an API package to make our invoice to cash. or Buy now, pay later, our commercial credit insurance, and soon our Track & Pay services. These services also include the operation of two data-driven platforms, one for institutional investors in trade receivables and one for insurance companies investing in venture capital insurance. Leading B2B brands, including several European unicorns, trust WALBING to finance and soon insure their entire user base.

Walbing disclaimer

This press release contains forward-looking statements that are based on management’s current expectations and involve known and unknown risks and uncertainties. Actual results or events may differ materially from those expressed or implied.

About Munich Re

Munich Re is a leading global provider of reinsurance, underwriting and insurance risk solutions. The group of companies includes the business areas of reinsurance and ERGO and the asset manager MEAG. Munich Re operates worldwide and in all insurance lines. Since its founding in 1880, Munich Re has been renowned for its outstanding risk know-how and exceptional financial soundness. It also offers its clients financial protection in the event of extremely high losses – from the San Francisco earthquake in 1906 to Hurricane Ida in 2021. Munich Re has a unique innovative power and is therefore able to insure itself against unusual threats such as missile launches, renewable energy or cyber threats. Munich Re leads the way in driving digital transformation in its industry, thus extending its risk analysis capabilities and service range. Individual solutions and the proximity of its customers make Munich Re a sought-after risk partner for companies, institutions and individuals all over the world.

Disclaimer Munich Re

This media information contains forward-looking statements based on current assumptions and forecasts by Munich Re management. Known and unknown risks, uncertainties and other factors may lead to the actual development of our company, in particular results, financial condition and business, deviating significantly from the forward-looking statements presented here. The company is under no obligation to update these forward-looking statements or to adapt them to future events or developments.

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