Almost 9,000 companies that have trade credit insurance with German ICMIF member R+V Versicherung (R+V) can look forward to a premium refund this year. Thanks to fewer claims and a growing customer base, the cooperative insurer is paying these policyholders the record sum of EUR 24 million this year.

This particular refund by R+V is made possible by the so-called reimbursement in trade credit insurance. If customers do not make a claim on the insurance cover within one year, they will get part of the premium back from R+V. The amount increases with each contract year up to a maximum of 40% – which is significantly above industry level. “Our customers benefit when their loss ratio is low. And the longer the insured remains claim-free, the higher the reimbursement,” says Alexander Beuther, Head of Department of R+V Trade Credit Insurance.

With trade credit insurance, companies, the self-employed or freelancers protect themselves against bad debts. The protection applies if deliveries of goods, works or services are paid for late or not at all by the customer. “Most of our customers belong to the wholesale and retail trade, crafts and the construction industry,” explains Beuther. “If the service has been provided and the money is missing, this is not only annoying, but can quickly threaten [a business’s] existence.”

Also in March this year, R+V announced that, thanks to its cashback programme, it was rewarding members of cooperative banks which had concluded a Member-Plus contract. The cashback programme was launched in 2020. If the Member-Plus community of a cooperative bank has a favourable claims experience, then R+V reimburses up to ten percent of the insurance premiums which is paid back to the member-plus customers in the following year. On “Cashback Day” 2023, on 10 March, R+V repaid a total of around EUR 13 million in contributions for 2022.

Image source: R+V/iStock Images