The 9.11 incident accelerated the spiral downturn of the global economy, leading to an increased number of bankruptcies, and thus rising bad debts, according to Mr. Stanley Au, Chairman of Delta Asia Financial Group.

The filing of Chapter 11 by the century-old company, K-mart, further impacted adversely on business confidence. In order to afford better protection for businesses, the Group teams up with one of the world`s most reputable credit insurance provider, Hermes Credit Insurance, to offer comprehensive credit insurance services to cover Macau businesses from risks of bad debts.

Credit insurance, according to DAI, is aimed at Macau`s export manufacturers, including exporters which have production facilities across the border. Businesses in the service industry will also be able to benefit by reducing exposure through this service.

"Local small and medium enterprises (SMEs) are not familiar with the concept of credit insurance," said Mr. Au, "This is in part attributable to the limited number of credit insurers in Macau with the product on offer. In part, SMEs are not aware of the importance of having credit insurance."

"We hope by bringing Credit Insurance into Macau at this point of time, we will be in a better position to help local SMEs understand the importance of credit insurance. With a better understanding of risk management, SMEs will reduce their exposure to bad debts and enhance their competitiveness."

There are two kinds of policies under Delta Asia Credit Insurance Service. Firstly, "Whole Turnover Policy" which covers 90% of insured`s account receivables. No letter of credit or letter of guarantee is required. The rights of the policy can be used to arrange further trade financing with BDA. In addition, there is an "Excess of Loss Policy" which protects businesses against large, exceptional losses on their trade receivables.

"We are delighted to work with BDA and DAI to provide credit insurance to Macau businesses. It is a good opportunity for us to develop the Macau market," explained Mr. Michael Haynes, Managing Director of Hermes Credit Underwriters Hong Kong Limited.

Hermes has over 80 years` experience of providing credit insurance. It is part of EULER & HERMES, the world`s largest credit insurance group, with a global market share of nearly 40%. EULER & HERMES is a member of the Allianz Group, the world`s largest financial services group.

A member of Delta Asia Financial Group, Delta Asia Insurance provides a wide range of insurance products, including fire insurance, motor vehicle insurance and employee compensation insurance.



For enquiries, please contact DAI customer hotline: 853-337036