Credit Insurance: The Unsung Hero of Business Growth

Trade credit insurance may not always grab headlines, but it is the quiet engine that keeps B2B transactions running, especially in tough economic times. In this insightful episode, Tony chats with Gideon Bochedi, Interim CEO of Credit Guarantee Insurance Corporation (CGIC), to unpack the critical function that credit insurance serves in South Africa and beyond.

Gideon begins by explaining how CGIC protects clients from the financial shock of unpaid invoices caused by insolvency, business rescue, or long payment delays—an increasingly relevant service as global and local economies remain under pressure. With minimal GDP growth and uncertain geopolitical trends, companies need protection that also supports business confidence.

Gideon highlights that CGIC doesn’t just offer protection, they offer economic insight. Through vast networks of data and real-time intelligence from clients, CGIC builds predictive models to help assess and manage risk. They also work closely with specialist brokers, providing in-depth product training to ensure a high level of understanding and service.

CGIC’s product is far more than a backstop, it’s an enabler. It helps clients secure more working capital by acting as collateral with banks and allows businesses to trade more boldly with peace of mind. As Gideon puts it, “Our product greases the wheels of the economy.”

This conversation sheds light on a niche but essential part of the insurance landscape. If you’re in finance, insurance, or any business dealing in credit, this is a must-listen for understanding how trade credit insurance supports resilience and growth.

Key Points

• Credit insurance protects businesses from non-payment due to liquidation, business rescue, or long-term default.

• CGIC is 75% owned by Old Mutual and 25% by Atradius, a global credit insurer based in Spain.

• South Africa’s economy remains under strain, with modest growth forecasts and increased global instability.

• CGIC provides working capital support and enables better access to bank funding via its policies.

• Risk management is driven by big data, predictive analytics, and daily client interaction.

• The broker channel is central to distribution, with a focus on specialist credit insurance brokers.

• CGIC offers specialised training to brokers interested in entering the space.

• The product is niche, technical, and vital, not based on traditional asset risk, but on trade exposure.

• Credit insurance greases the wheels of commerce, especially in B2B environments with long payment terms.

• Even black swan events (e.g., sudden tariffs) can be partly mitigated by CGIC’s dynamic insights.