June 2017 Receivables Insurance Canada News available online

This month's issue is published. Please click here or click on the image below to read the full issue of Receivables Insurance Canada News. The Association highlights an article published at The Canadian Trade Commissioner Service page of the Government of Canada website - great article, don't miss it!

Other stories this month come from Association members, Euler Hermes, Coface Canada, Atradius Canada, Export Development Canada and Marsh Canada. There are also an extra number of "What's Receivables Insurance all about?" videos in this issue. Take a look!

Risk Mitigation Tool - Receivables Insurance - Helps Companies Ease Market Entry

“Generally (receivables insurance) customers purchase a policy that insures all of its buyers in all of the geographic regions in which it sells,” says Mark Attley, President of RIAC. “Individual limits are established for each buyer that ideally reflect the maximum outstanding receivables balance under normal trading.”

“Canadian businesses need to be aware that they are not alone. There are insurers who will not only protect them, but help them in understanding the buyers they want to deal with and essentially helping them grow their sales by providing them with information that they may not be able to get,” says Attley.

To read the full article and learn much more, please visit the Canadian Trade Commissioner Service page of the Government of Canada website, or click into the image below. Thank you Robyn Finlay for writing this article. For the French version of this article, please visit this page.


The April issue of the Association's online newsletter features our new YouTube channel and updates from many of the association's members. Trade Securely videos explain how receivables insurance makes Canadian businesses more profitable. Check these videos out!

Please click into the image below to read the full issue. When you visit YouTube, please consider subscribing to our channel.

TradeSecurely.ca launched by Receivables Insurance Association of Canada

March 14, 2017 - The Receivables Insurance Association of Canada is proud to announce the launch of its new interactive, newsworthy website, www.tradesecurely.ca. This new website will feature content from RIAC members including AIG, Atradius, Euler Hermes, Coface, EDC, The Guarantee, Red Rock, Zurich, Aon, Credit Insurance, Inc, GCRM, Gobal Trade Credit, Marsh, Millenium and Dan Lawrie Insurance Brokers.

www.tradesecurely.ca was created to promote the business opportunity for receivables insurance – also known as trade credit insurance – to Canadian insurance brokers, the banking industry and businesses engaged in domestic trade and exporting. The Receivables Insurance Association of Canada also works to advance industry innovation and product integrity, solve any business problems related to government legislation, and represent the interests of its members by facilitating an open exchange of information and ideas.  This new platform will allow Canadian businesses to have access to a variety of content on receivables insurance in one central location.

“With so much information about receivables insurance available from so many different sources, we hope that tradesecurely.ca will become a “go-to” source for the latest and most accurate information on receivables insurance for Canadian businesses.” - Ian Miller, RIAC Board Member

In much the same way as mortgage insurance is designed to protect a bank in the event of a foreclosure due to the financial failure of the mortgagee, receivables insurance protects your business from buyers – in Canada or abroad – that are unable to fulfil their invoice payment obligations. Such inabilities can be the result of  buyer insolvency, protracted default (failure to meet obligations on time due to inadequate cash flow), or political disruptions that lead to a loss on current receivables. Receivables insurance policy coverage can trigger more favourable finance rates and/or increase the percentage of financing on a working capital loan – allowing your business to grow sales faster.

The Receivables Insurance Association of Canada hopes that this new website will help educate Canadian business owners about what receivables insurance is, how it can help their business grow and protect them from default payments.

For more information on The Receivables Insurance Association of Canada, please visit: www.receivablesinsurancecanada.com

About the Receivables Insurance Association of Canada

The Receivables Insurance Association of Canada promotes the business opportunity for receivables insurance – also known as trade credit insurance – to Canadian insurance brokers, the banking industry and businesses engaged in domestic trade and exporting. The Receivables Insurance Association of Canada also works to advance industry innovation and product integrity, solve any business problems related to government legislation and represent the interests of its members by facilitating an open exchange of information and ideas.  

March 2017 issue of Receivables Insurance Canada News

This month's issue is online with stories via members, Euler Hermes Canada, Coface Canada, Atradius Canada, The Guarantee Company of North America, Zurich Canada, Credit Assur Inc., Aon Canada, Export Development Canada and others. The launch of the Association's new interactive website is also mentioned in this issue: please visit: www.tradesecurely.ca 

Please click on the image below to read the full issue!

Canadian economy in Trump era: Commentary from Receivables Insurance Assoc. of Canada member, Euler Hermes' Dan North

The following article - In 2017, Canadian economy will get its first taste of the Trump era - by Canadian Press reporter Andy Blatchford, was published in the Montreal Gazette and at CTV News.ca on 22 December 2016. Dan North, a senior economist for financial services firm Euler Hermes North America, which is a member company of the Receivables Insurance Association of Canada, shared his insights with Andy Blatchford for this article...

OTTAWA - The Canadian economy exits 2016 with bruises from the still-tough adjustment to weak crude prices and scars from the devastating wildfires that singed the oil patch.

It enters 2017 with lingering challenges and a potential new obstacle that could attract more attention than the rest: the economic unknowns of a Donald Trump presidency.

While it remains to be seen what will become of the U.S. president-elect's vows in areas like taxation, trade and investment, their implementation could have significant impacts for Canada.

Canadian policy-makers say they will closely follow developments after Trump takes office Jan. 20.

For now, decision-makers like federal Finance Minister Bill Morneau are reserving judgment on how changes would affect the country.

"Looking towards next year, the change in the U.S. will of course present us with a different economic environment — it's too early to have a clear view of the impacts," Morneau said in a recent interview.

"But what I can assure you ... is that we're working to understand the new administration's economic policies and to present how we can work together with them to enhance their growth and our growth; because our view is that we do better if we are open to helping others.”

For example, Trump has vowed to drop the tax rate for top-income earners by six per cent and by three per cent for middle-income earners.

He promised to bring the U.S. corporate rate, one of the highest in the world, down to 15 per cent from 39 per cent. Such a cut would make the U.S. corporate rate far lower than the average effective rate in Canada, where it's about 26 per cent when federal and provincial rates are combined.

Prime Minister Justin Trudeau was asked in a recent roundtable interview with The Canadian Press about the potential impact of Trump's promised tax cuts on Canada's efforts to bring in foreign investment dollars.

"Let's not respond too much to hypotheticals," Trudeau said.

"Obviously, you have to be thoughtful about potential paths, but I'm not going to react to an administration that's not actually in place yet.”

Trudeau said while taxes are always a consideration, he argued that Canada is attractive to investors for other reasons, including its well-educated workforce, openness to immigration and stability.

University of Calgary tax-policy expert Jack Mintz has said Canada's ability to lure business investment and top talent would be threatened if the U.S. moves ahead with Trump's vows to significantly cut tax rates for U.S. corporations and for the highest income earners.

Trump has also made it clear he wants Buy American rules in his planned $1-trillion infrastructure program, which could leave out Canadian companies.

To add to the unknowns for Canada, Trump has called for the renegotiation of the North American Free Trade Agreement.

But some experts say the expectations of Trump's business-friendly promises are poised to lift the U.S. economy, which would help Canada.

Dan North, a senior economist for financial services firm Euler Hermes North America, said U.S. business confidence has climbed since the election, in large part due to the prospect of corporate tax reductions. As a result, North said his company bumped up its 2017 U.S. growth projection to 2.4 per cent from 2.1 per cent.

"We have a fair amount of confidence that we're looking at a pretty solid year in the U.S. next year, which of course should translate into higher demand for Canadian exports," North said.

Former Bank of Canada governor David Dodge agreed in a recent interview that he expected faster post-election growth in the U.S. to be a positive for the Canadian economy over the short term.

Over the medium and longer term, however, Dodge thinks Canada could struggle in areas like trade, attracting investment and, in particular, tax competitiveness.

"It's an enormous challenge, I think, for Ottawa," he said.

"It is a very unfortunate problem that the minister of finance will have to deal with.”

In 2017, the central bank will remain focused on whether Canada's disappointing export performance can show real signs of life, current governor Stephen Poloz said earlier this month, during his final news conference of 2016.

Poloz said the bank will also look for the economy to continue to adjust to the sting of low oil prices and for the expected pickup in U.S. growth.

When asked, he declined to discuss what new policies might be introduced in the U.S. and how they could affect Canada. He did, however, say that uncertainty among companies expanded during the election campaign and he believes that sentiment remains "undiminished.”

Still, after what Poloz called a "challenging year" in 2016, he sounded cautiously optimistic for 2017.

"We have enough confidence that we're on track, but we need to continue to monitor that," he said. "Of course, the economy and the world economy have shown the capacity to disappoint in the past."

Exploring Receivables Insurance - a Broker Opportunity

Receivables Insurance (also knows as credit insurance) has been supporting global businesses for decades. The Canadian market for credit insurance is currently valued at over $200 million and it is expected to expand as awareness of its value grows within the business community.

Credit insurance can be a new source of income for the broker, banker or business. The video below, produced by Receivables Insurance Association of Canada member, Atradius, is designed to provide an overview of credit insurance, the types of credit insurance policies available, the revenue opportunities and competitive advantages it provides, as well as a roadmap for finding clients.

Please ensure audio is activated on your device

Note: The above video is best for mobile users, if you would like to access the user-operated video, please click into to this link on the Atradius website.