Credit insurance can provide benefits to all stakeholders with an interest in a pension plan. Through its unique design, credit insurance adds value for the company, employees covered by the pension benefits and the company's owners.
A credit insurance solution can become relevant in many contexts, including:
- to fully or partially replace capital contributions when regulations require funding or managing a deficit.
- as a secure asset pool whose value is not affected by movements on capital markets
- to enable a forward-looking, long-term management strategy
- as security in the case of reborrowing from a foundation or pension fund.
The protection of pension plan members can be improved or maintained without costly and often unwanted cash injections.
With credit insurance, the focus can be shifted to long-term success issues for the pension plan instead of short-term needs and constantly recurring, time-consuming deliberations about financing the pension plan.
There are currently solutions designed for the UK, Irish, Finnish and Norwegian markets.