Allianz group company to target SMEs for credit insurance

Mumbai, Apr 13 (UNI) Targeting the rapidly-growing credit insurance market in India, Paris-based Allianz group company Euler Hermes has inked a pact with Indian insurance major Bajaj Allianz General Insurance to make available its export credit insurance offerings in India.

Addressing journalists here today, Euler Hermes group chairman Clemens von Weichs said that one of the prime focus segments of the company will comprise the SME segment for which it will launch a tailor-made product with features that will cover the credit risk, be easy to operate besides enabling the small and medium enterprises (SMEs) to cover their creditors and have access to cheaper finance.

''Our product will not only be easy to understand and operate but itwill also be easy to administer for our customers,'' he announced, adding that the company's strategy was to cash in on Bajaj Allianz's strong distribution network to make available its offerings in the Indian market.

The Indian credit insurance market presently estimated at 35 million Euros is projected to nearly quadruple at 140 million Euros within the next three years.

''We at Euler Hermes recognise the immense potential the Indian market holds for our services and hence we will strongly focus here,'' he said.

''Credit insurance will assume an increasingly critical role in India with the Indian market changing rapidly not only in the way business is being done but also in the way payments will be made in the future,'' Mr. von Weichs said, adding that his company defined SMEs as those enterprises with a turnover of between 2-to-10 million Euros.

The global leader in the credit insurance segment with a 34 per cent marketshare and a net profit of 286.1 million Euros in FY 05, the company presently has a customer base of 55,000 clients worldwide and handles 20,000 credit limits a day.

The company also possesses a huge database of 40 million companies worldwide of which 5,000 are Indian companies.

In the last eight months, Euler Hermes has underwritten 10 policies with a premium base of Rs 2.5-crore in India.

''We are in negotiations with several companies here presently and I expect exponential growth for our company in the next three-year period,'' Mr von Weichs said.

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