When universal standards are not enough
Despite an uncertain international economic climate, operating across borders provides companies access to a range of global markets and resources. In fact, our economic research department has highlighted the emergence of regional trade hubs such as Vietnam, Malaysia and the UAE, that companies are increasingly looking to in order to diversify supply chains and boost business resilience.
However, initiating a partnership in a new country also means navigating a new risk profile accompanied by myriad operational considerations. Given the recent US tariffs , companies throughout the globe are now facing major uncertainties related to economic conditions, rising production costs and supply chain vulnerabilities . Multinationals (MNCs) thus must always be equipped to confront a host of possibilities tied to different markets’ unique circumstances.
To remain competitive while minimizing risk exposure, MNCs need more than a one-size-fits-all insurance policy: they require a partner that offers tailored coverage and strong risk management solutions for operations anywhere in the world.
Addressing MNCs’ diverse challenges
Allianz Trade’s World Program provides a comprehensive trade credit insurance (TCI) framework that is adapted to address diverse challenges facing MNCs. Each program is uniquely designed to offer both global and localized coverage that speaks to the individual regulatory, financial and business conditions presented by different world markets.
For example, an electronics manufacturer with an assembly facility in Poland could require specialized equipment coverage to meet EU production standards, as well as coverage against credit risk for its wholesale distributors outside the EU. By offering bespoke programs tailored to different regions, our clients have the flexibility to adapt their business to local conditions.
World Program is designed for MNCs across all sectors, with specialized solutions for specific industries and jurisdictions. As an example, for financial institutions (FIs) , we provide a customized offering that addresses the challenges of managing credit risk and complying with regulations in the financial sector.
In addition to providing coverage for existing portfolios, our TCI solutions also protect receivables from new buyers. This extends to markets in which an MNC may not yet have established relationships. For instance, an automotive manufacturer expanding into a new geography may wish to partner with regional distributors but have concerns about extending payment terms given unfamiliar credit histories and local practices. By securing credit from World Program, the manufacturer can confidently extend payment terms to this customer, knowing they are protected against financial losses from transactions in an unfamiliar market.
Driving growth for the long run
At Allianz Trade, we believe TCI should go beyond protecting existing operations – it should be a tool to unlock future growth. With over 20 years of industry experience with MNCs and a team of more than 500 professionals across 50 countries dedicated to this segment, we’re uniquely positioned to support our clients’ international expansion through our World Program offering.
In addition to TCI, we provide our clients with access to a global network of credit analysts and risk underwriters with insights into local markets. This empowers our clients to make informed decisions about which clients to trust, and how to safely structure credit terms – whether they’re venturing into mature markets or emerging regional trade hubs such as Vietnam. Furthermore, we collaborate closely with our clients to understand their strategies and risk appetite, tailoring solutions that evolve with their needs. Our clients benefit from policies that are steered centrally but remain flexible and can be adapted to each local context.
Allianz Trade’s market leadership and financial strength, backed by the resources of Allianz Group, ensure that we can reliably support our clients' growth for the long run. With over 11,000 corporate clients, we are a trusted partner in helping businesses thrive in a complex global landscape.
Your support system for now and tomorrow
As the global business environment continuously evolves, MNCs only stand to gain from a partner that can adapt to changes and guide them through the complexities of different markets. By working closely with clients and maintaining a strong global presence, we remain ahead of emerging trends while providing the risk coverage needed to execute international business fearlessly.
