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Growth in direct premiums of receivables insurance advances 8% in first half of 2015 Oct. 8 free trade symposium aims to build more awareness

October 5, 2015   by Receivables Insurance Association of Canada

RIAC

Toronto, ON – The Receivables Insurance Association of Canada is announcing 8% growth in direct premiums totaling $111,396,000 during the first two quarters of 2015. As well, in the first half of 2015 ended June 30, Canadian underwriters carried 6,802 receivables insurance policies compared to 6,598 policies in the same period last year. As it releases these results, the association is preparing to amplify its industry presence with a trade and economics symposium in Toronto on Thurs. Oct. 8.

“Canada’s place in the global trade picture has become more uncertain as commodity prices are buffeted by falling global growth and regional conflicts continue, said Mark Attley, the association’s President. “That’s why we’re seeing more Canadian companies turning to insurance that protects their receivables from buyers in Canada or abroad that are unable to fulfill their invoice payment obligations, or from political disruptions that lead to a loss on current receivables.” Attley added that receivables insurance in Canada supports 610,000 jobs in insured companies, and helps facilitate over $74 billion of Canada’s GDP.

On Thursday Oct. 8 the Receivables Insurance Association of Canada is sponsoring a symposium in Toronto entitled Canada’s Free Trade Agreements – Global Opportunity or Threatened by Protectionism? Doors will open at 7:45AM and talks will commence at 8:30AM at the Arcadian Loft, 401 Bay Street, Simpson Tower, 8th Floor. It will conclude at 10:30AM.

The symposium topic will be discussed and debated by two economists and an international trade expert: Ludovic Subran, Chief Economist and Director for Economic Research, Euler Hermes; Hugh Stephens, Principal, Trans-Pacific Connections, who is also an Executive Fellow at the School of Public Policy at the University of Calgary and a Senior Fellow at the Asia Pacific Foundation; and Al Mussell, Research Lead, Agri-Food Economic Systems Inc. David Parkinson, Economics Reporter for The Globe and Mail, is moderating.

A networking and learning event, the symposium is targeted at insurance and banking professionals who need to understand the implications of Canada’s current global trade situation and what it means for their clients. It will also be valuable for business owners operating in domestic or export markets who need to understand not only the economic landscape, but how to apply risk management tools such as receivables insurance to protect their balance sheets and give them better access to capital.

Following are three statements made by each of the three symposium speakers ahead of this Thursday morning’s Receivables Insurance Association of Canada event:

  • “While every bit of export competitiveness gained contributes to increasing export value and boosting the economy, perhaps it would be good to not put too fine a point on the issue of FTAs as 74% of Canada’s exports end up in the US, while 4% ends up in China and the UK, 3% in Japan and 1% in Mexico. Unless a seismic shift in trade patterns occurs, on an aggregate level new FTAs that do not concern these countries might only add a drop, or a few, into the vast ocean that is Canada’s exports.”
  • Ludovic Subran, Chief Economist and Director for Economic Research, Euler Hermes Group

 

  • “Canada has benefited significantly from trade liberalization both through lowering of trade barriers globally (through the WTO) and through the free trade agreements (FTAs) that it has signed. While a breakthrough in the WTO to conclude the current Doha Round would be the ideal solution, in the absence of this solution bilateral and regional trade pacts are filling the void. It is essential for Canada to be at the table in these negotiations, such as the TPP, in order to protect and advance our economic interests.”
  • Hugh Stephens, Principal, Trans-Pacific Connections 

 

  • “Canada’s agricultural production greatly exceeds domestic demand; as such, Canada has an overwhelming export interest in agri-food products to economically utilize this capacity. Canadian agri-food has isolated sensitivities to more open trade in dairy, poultry, and eggs relating to past domestic marketing issues.  These industry segments deserve attention and domestic accommodation, but their sensitivities have not, and should not, prevent Canada from entering into trade agreements that liberalize trade in food and agricultural products.”
  • Al Mussell, Research Lead, Agri-Food Economic Systems Inc.

 

About the Receivables Insurance Association of Canada

The Receivables Insurance Association of Canada promotes the business opportunity for receivables insurance – also known as trade credit insurance – to Canadian insurance brokers, the banking industry and businesses engaged in domestic trade and exporting.  The association also works to advance industry innovation and product integrity, solve any business problems related to government legislation, and represent the interests of its members by facilitating an open exchange of information and ideas.  

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