16.12.2022

The Texel Americas Crystal Ball: what to expect from us in 2023

March 2023 will mark 5 years since Texel (re)opened an office in New York.

I’m not sure where the time has gone!

When we were planning to set up the office in the US, we outlined a plan for where we thought we’d be supporting our clients. Looking back at this now, we weren’t that accurate!

External factors, influences, events and pandemics occur, meaning as a result, our focus in the US is different to what we had ‘predicted’ back in early 2018. It shows the importance of having flexibility as a broker as client needs change, suddenly or gradually, and we also must pre-empt problems and suggest new solutions.

We were accurate in our thoughts in some respects however, and these will continue to apply in 2023 and beyond. Here’s a few non-exhaustive and non-ordered thoughts:

There is huge expertise in the credit insurance market in the US and also a desire from all insurers to expand.

The US market has deep knowledge on US and Americas-specific topics, geographies and industries. As the global credit insurance market expands in regions and assets, local or specific knowledge is more and more important, and we think that there is a great opportunity for clients in the Americas to share an understanding with insurers that can be mutually beneficial to increase financing and insurance support.

We’ve seen a development and shift in the capabilities of US insurers over the last 5 years. I’m sure that some insurers get frustrated (“Why can’t you just bring us something straightforward?!”), so we are grateful for the insurers listening patiently and then exploring whether our ideas may actually be possible. We’re then very grateful when they are!

Consistency in dealing with clients across our offices is very important.

The insurance market is global. Clients don’t differ between dealing with insurers in one location of another (except counterparty limits and approvals), and therefore need to be represented by Texel in a well-informed manner. Our teams need to coordinate globally – I think we do it well but need continue pushing this.

Collaboration across offices allows ideas to travel – there is lots we can learn from the European or Asian insurance markets and vice versa.

We’ve got to be out and about.

We need to be speaking and meeting with our clients and insurers. Relationships are key and for a small, specialist broker, we need to make sure that we put as much time and effort into these.

Doing these in-person is so important. Expect to hear from us soon!

What will impact the credit insurance market in the Americas going forward in 2023 and beyond?

As always economic and political trends at the local and global level will continue to have the greatest impact. The global drive towards more development finance for emerging markets at the same time as restricted capital from emerging economies, should expand the need for insurance market support in this area. The expansion of sustainability focused financings in part due to local regulatory change will give clients the opportunity to work with insurers whose corporate mandates also are aligned with this area.