SLOVAK businesses can now take out insurance against delinquent clients.
"Credit insurance has expanded by about one fifth each zear for the past two years," Helena Múdra, manager of the Slovak branch of Euler Hermes Servis, a subsidiary of Allianz, told the Trend weekly.
Dutch-based Atradius Credit Insurance has noticed a similar potential for credit insurance. Though some Slovaks use it, many are still unfamiliar with it.
"Many Slovak clients have to study it first, but those with a foreign owner usually have specific questions, as they know it from their home market," Múdra said.
Euler Hermes continued that the possibility of recession in the US would present an opportunity for credit insurance to extend its market share.
"Bad news brings us business," said Andrej Račko, the company's business director.
The Central and Eastern European regions present other opportunities as well. In Hungary, the number of bankruptcies grew by one fifth last year, which could enhance interest in insuring against non-payment of debts.
"Central and Eastern Europe is practically non-existent in our insurance field, so there is immense potential," said Thomas Langen, who oversees the region for Atradius.