Euler Hermes says it has recently launched trade credit insurance solutions for HSBC Commercial Banking customers in Singapore and intends to target an Asian market hitherto reliant on letters of credit (L/C) to secure trade finance transactions.

The insurance solutions will be delivered under a global distribution agreement signed by Euler Hermes and HSBC in May this year.

Market potential

Through the partnership, HSBC customers trading on open account will be able to access the insurer's trade credit solutions and CEO of Euler Hermes ASEAN. Victor Jiang is in no doubt where he sees market potential.

"In the past, Asian businesses have tended to rely on secure terms such as L/Cs, but with competition for profitable growth opportunities intensifying, they are coming under increasing pressure to offer open credit, even where they may not be comfortable doing so," he says.

Partnership history

HSBC and Euler Hermes, a subsidiary of Allianz SE, have been strategic partners for trade credit insurance in Brazil, Mexico, the UAE and the US since 2008.

The partnership has also recently been launched in the UK, France and Hong Kong.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.