Trade credit insurers are not always aware of the identity of all the insured buyers or debtors of their clients (specifically the smaller ones). Policyholders are normally given a discretionary amount up to which they may trade under the cover of the policy without notifying the insurer. Any exposure exceeding this discretionary amount is known by the underwriter and confirmed by means of a written credit limit.


Trade credit insurers are not always aware of the exact usage of the granted credit limits, although average usage is known, and high risk exposures are actively monitored.