Clifford Chance

Coronavirus: Considerations when claiming on credit insurance

2 April 2020

The market for credit insurance has increased exponentially in recent years with financial institutions purchasing credit insurance for capital mitigation purposes and as a hedge against default risk.

What should financial institutions do now to ensure they are able to claim on their credit insurance policies in light of growing concern that the coronavirus will lead to borrowers requesting payment holidays or, worse, becoming insolvent and defaulting on their debt?

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