The adverse impact of the domestic economic depression drives Greek companies to look for markets in neighboring countries and beyond. Although this move into new markets can be seen as an absolute prerequisite for survival and growth, companies expanding abroad are faced with a whole new set of risks. Political and credit risks are at the top of the list.
Not only credit and collections policies must be taken into consideration but a clear understanding of which countries present the best opportunities is needed and how local customs will affect your business. In countries faced with financial instability or even with insolvency or bankruptcy, recovery of receivables is a much more difficult task due to language barriers, different business customs, local legal systems or other factors. In order to provide cover for risks associated with doing business abroad financial protection products have been made available in the international insurance market.
Today the demand for such products is on the rise along with higher prioritization from “nice to have” to “must have”.
There is a wide selection of polices in the market today and it is important for the expanding company to be aware of the market trends in order to secure the best deal available. Insurance companies find this sector of their business challenging to the extent that they are prepared to design tailor-made products to meet the demands of individual clients in specific geographical areas.
At the same time it is quite interesting that in spite of the dire economic situations in countries like Syria and Nigeria insurance companies continue to underwrite policies to business based on the profile of their customers. It is crucial that the client provides detailed information to the insurers so they can understand all they need regarding the risk at hand in order to put together the best coverage at the optimal price.