FGI Helps Komar Restructure Global Credit Protection Program, Reducing Costs by 25%
“We were looking to reduce the costs associated with managing credit protection for our global portfolio. FGI helped us structure the ideal credit insurance policy and is monitoring the policy through their T.R.U.S.T.™ platform.”
Established in 1908, Komar is a global leader in the design, sourcing, manufacturing and distribution of apparel. With distribution centers and sourcing networks across the US, Europe, Asia and the Far East, the company manages a diverse portfolio consisting of over 100 owned, licensed and private label brands.
Komar historically utilized various risk transfer strategies and services to provide credit protection for its global portfolio; however, the company was seeking more economical and scalable alternatives to manage its portfolio risk.
Komar had considered exploring credit insurance as an alternate solution but was concerned with the compliance requirements of credit insurance policies to ensure that such policies would be effective in the event of customer default. Additionally, the company was concerned with the time and staffing requirements associated with maintaining compliance with those policies. Having heard of FGI’s expertise with credit insurance, as well as FGI’s policy management tools and services, Komar decided to reach out to them to learn more.
FGI provided Komar with an overview of how they structure credit insurance policies for clients in industries ranging from apparel and textiles to technology and financial services in order to manage customer and portfolio risk. Additionally, FGI introduced Komar to their credit insurance monitoring and compliance platform, T.R.U.S.T.™, and demonstrated its robust automated policy management features. After gaining an understanding of the T.R.U.S.T.™ platform’s capabilities, the company realized that credit insurance in concert with the T.R.U.S.T.™ platform would be an ideal solution.
FGI subsequently conducted a full analysis of Komar’s business requirements and, through its established relationships with all major credit insurance carriers, structured a policy that provided Komar with the coverage they required. Additionally, with the implementation of the T.R.U.S.T.™ platform to manage the policy’s compliance, Komar was confident that they would receive the full benefit of their credit insurance policy in the event of customer default. The program established by FGI for Komar resulted in a 25% decrease in total cost for the company’s global portfolio credit protection.
