Banks and Financial Institutions
Enhancing Banks’ Intervention Capacity, Regulatory Compliance and Capital Efficiency
Banks and financial institutions are the primary users of the credit and political risk insurance markets. They rely on these covers to:
- Distribute or syndicate their exposures through non-payment insurance, transferring borrower default risk to A-/AA-rated insurers.
- Optimise regulatory capital, with insurance allowing “risk-weight substitution” by replacing the debtor’s probability of default with that of the insurer.
- Comply with regulatory limits such as large exposure thresholds or restrictions on leveraged and real estate financing.
- Increase financing capacity, underwriting larger transactions without increasing net risk.
As an accredited Lloyd’s broker since 2019, Cofarco has positioned itself as a differentiated partner for banks and multilateral financial institutions, particularly on highly technical topics such as portfolio structures, rating enhancement, derivatives, LBOs and a wide range of alternative asset classes.
“By aligning structured credit insurance with regulatory and capital requirements, we enable banks to replace borrower risk with insurer strength, unlocking both balance sheet efficiency and new lending capacity.”
+EUR 600 bn
of estimated bank lending underpinned by credit insurance (ITFA insurance committee survey)