Bahrain Kuwait Insurance Company (BKIC) has launched a new credit insurance scheme that it says will supplement letters of credit (L/Cs) already available for Bahraini businesses.

The new scheme has been developed and launched by BKIC in partnership with Euler Hermes Credit Insurance.

First for Bahrain

According to BKIC, it is the first company in the kingdom to launch such an insurance scheme, which aims to assist the business community's management of credit risk.

The scheme provides insurance cover for businesses' trade receivables on a portfolio basis.

L/C supplement

The Bahraini insurer says credit insurance supplements tools such as L/Cs, which have traditionally been used to secure the sellers' interests.

Credit risk is inherent in most business transactions and companies can spend a great deal of time and effort chasing overdue invoices BKIC says.

Euler HermesAllianz Group member Euler Hermes is one of the largest insurance groups in the world but it is a relative newcomer to the Arabian Gulf region.

The company opened in May 2007 a fully-fledged service centre in Dubai to cater to clients in the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Oman and Kuwait.

The world's largest credit insurer says it will work in close cooperation with local partners such as Al Buhaira Insurance, Assurance Saudi Fransi and Qatar Insurance Company.

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