Euler Hermes, a credit insurer and member of the Allianz Group, and Shanghai-based China Pacific Insurance (CPIC Group) have teamed up to offer Chinese clients a dedicated risk transfer solution for their outstanding commercial invoices.

Euler Hermes holds a 2.8% stake in CPIC representing 10.4% of the CPIC Group shares listed in Hong Kong.

Euler Hermes said that the objective of this investment is to participate in the Chinese insurance market and open up cooperation opportunities.

The partnership enables Chinese corporate clients to protect their trade receivables. It enables Chinese corporates to trade with their B2B customers on an open account basis. Commercial credit insurance indemnifies CPIC Group’s clients in case of bankruptcy of their buyer and non-payment of the invoice.

In addition, the solution enables them to better select potential buyers and to determine the right payment terms for them.

Euler Hermes provides reinsurance capacity and brings its trade credit risk underwriting expertise while CPIC Group provides its market knowledge and sales network covering the whole of mainland China.

China Pacific Property Insurance, subsidiary of CPIC Group, CEO Wu Zongmin said that with the backing of Euler Hermes China Pacific Insurance will support corporates in China in managing their trade risks and enable them to develop their business safely, effectively and profitably.