Credit insurance may be advantageous for all interested parties in a pension plan. Through its unique formulation, the credit insurance adds value to the company, employees covered by the pension benefits and the company’s owners.
A credit insurance solution may be relevant in many contexts, including:
- replacing capital contribution in whole or in part when regulatory frameworks require consolidation of deficits;
- a safe asset, the value of which is not affected by movement on capital markets;
- enabling a forward-thinking, long-term management strategy;
- security in connection with re-borrowing from a foundation or pension fund.
The protection for members of the pension plan may be improved or maintained without the costly, and often unnecessary, injection of liquidity.
With credit insurance, focus can be shifted to long-term prosperity issues for the pension plan instead of short-term needs and constantly recurring and time-consuming deliberations regarding financing of the pension plan.
Presently, there are solutions designed for the Great Britain, Finland and Norway markets.