The International Credit Insurance & Surety Association is a global association representing trade credit insurers and surety companies. ICISA members facilitate trade, by insuring payment risks resulting from local sales as well as exports, or by providing security for the performance of a contract. Members of ICISA meet regularly and benefit from an exchange of information and expertise. ICISA has a role as advocacy and media relations organisation on issues and topics that are relevant for the members. ICISA advises international and multinational authorities on issues related to the trade credit insurance and surety bond industries.
Object of the association
The object of the association is to study questions relating to credit insurance and surety, to provide opportunities for members' employees to acquire knowledge of the theory and practice of credit insurance and surety underwriting, and to represent the Members’ interests."
Some issues addressed by ICISA
Technical excellence, innovation and product integrity.
Review of the effects of cross-border insolvencies
Recommendations with regard to binding orders and non-cancellable limits
Report on issues concerning fronting for surety bonds
Recommendations with regard to pre-shipment cover
Review of political risk
Syndication of credit risks
The impact of globalisation on credit insurance
Review of co-surety as an alternative to reinsurance
Monitoring developments in custom and excise bonds
Exploring areas for surety business
Publication of the Catalogue of Credit Insurance Terminology
Advising rating agencies on the role of surety bonds on PPI/PPP infra-structure projects
Advising CEIOPS / European Commission on Solvency II proposed legislation
Sharing and assessing the possible impact of Basel III on trade credit insurance and surety industry
Structural initiatives
Founding member of the International Surety Association which undertakes joint projects together with national surety associations of Australia, Canada, Mexico and the USA
Trade credit insurance insures against the risk of non-payment by a buyer. If a buyer does not pay, the trade credit insurance policy will pay out a percentage of the outstanding debt. This percentage usually ranges from 75% to 95% of the invoice amount, but may be higher or lower depending on the type of cover that was purchased.
Surety and bonds
Surety bonds guarantee the performance of obligations, from construction or service contracts, to licensing, to commercial undertakings. The surety guarantees to pay the direct loss suffered by one party as a result of a contractual default by the other party. For example, the failure of a contractor to complete a contract in accordance with its terms and specifications or the failure of an enterprise to pay taxes or customs duties to a government or department.
Members' main lines of surety business are:
Customs, tax and/or similar bonds
Bonds concerning concessions and licenses
Judicial Bonds
Bonds concerning purchases of goods and/or services
Bonds concerning leases
Bonds concerning construction and/or supply contracts
Financial bonds
Other bonds
Reinsurance
A reinsurance company insures the risk that has been underwritten by an insurance company. The risk of a major loss event imposes a burden that no single company can bear. Reinsurance makes it possible for these risks to be underwritten. In a way, one could say, "reinsurance is insurance for insurance companies". Over the years the international reinsurance sector has developed into a highly specialised financial services industry that works closely in conjunction with direct insurers to meet the needs of their cursomers. ICISA's Reinsurance Members have departments focusing only on the reinsurance of credit insurance and surety risks.
History
ICISA was established as in 1928. Current members account for 95% of the world's private credit insurance business, insuring risks in most countries.
