The International Credit Insurance & Surety Association (ICISA) was founded in April 1928, forming the first trade credit insurance association. The Association is registered in Zurich (Switzerland) under Swiss Civil Code (article 60). The Secretariat is based in Amsterdam.
The International Credit Insurance & Surety Association (ICISA) 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.
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."
Technical excellence, innovation and product integrity.
Review of the effects of cross-border insolvenciesRecommendations with regard to binding orders and non-cancellable limitsReport on issues concerning fronting for surety bondsRecommendations with regard to pre-shipment coverReview of political riskSyndication of credit risksThe impact of globalisation on credit insuranceReview of co-surety as an alternative to reinsuranceMonitoring developments in custom and excise bondsExploring areas for surety businessPublication of the Catalogue of Credit Insurance TerminologyPromoting sustained quality management
Discussions between members exchanging experience and best practices on current challengesReview of capital and portfolio management toolsReview of cycle management optionsReview of the current and future reinsurance environmentReview of co-insurance and facultative reinsurance optionsAdvising international and multinational authorities
Sharing effects of the State Support SchemesCreating awareness at the European Commission of the lack of a level playing field for surety productsPromoting a global level playing field for surety insurers in public contractsCounterpart for the Comité Européen des Assurances (CEA) in the drafting and implementation of Solvency II requirementsPromoting the ICC uniform rules for contract guaranteesParticipating in meetings of the UN Commission on International Trade Law (UNCITRAL)Advising the International Accounting Standards Board (IASB) on their proposals with regard to the credit insurance and surety sectorsAdvising rating agencies on the role of surety bonds on PPI/PPP infra-structure projectsAdvising CEIOPS / European Commission on Solvency II proposed legislationSharing and assessing the possible impact of Basel III on trade credit insurance and surety industryStructural initiatives
Founding member of the International Surety Association (ISA) which undertakes joint projects together with national surety associations of Australia, Canada, Mexico and the USAPartner in an industry project to determine the Probable Maximum Loss (PML) or Loss Given Default (LGD) of underwritten risksResearch into standardising reinsurance requirementsPress conference calls to inform media on topics of interestPublication of an industry newsletterPublishing ICISA Catalogue of trade credit insurance and surety (English, French, Italian, Spanish and German)Members and their lines of business
Trade credit insurance
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 (generally employer or beneficiary) as a result of a contractual default by the other party (generally known as the contractor). 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 bondsBonds concerning concessions and licensesJudicial BondsBonds concerning purchases of goods and/or servicesBonds concerning leasesBonds concerning construction and/or supply contractsFinancial bondsOther bondsReinsurance
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.ICISA was established as (ICIA) (International Credit Insurance Association) in 1928. Current members account for 95% of the world's private credit insurance business, insuring risks in most countries.
Cobac of Belgium (now Euler Hermes)Crédito y Caución (now part of Atradius Group)Eidgenössische of Switzerland (now Winterthur)Hermes of Germany (now Euler Hermes)NCM of the Netherlands (now Atradius)SFAC of France (now Euler Hermes)SIAC of Italy (now Euler Hermes)Trade Indemnity of the UK (now Euler Hermes).ICISA's members account for over 95% of the world's private credit insurance business.ICISA members insured over 2 trillion USD worth of trade worldwide.In 2012 the association counted 48 members.
