Israeli Diamond Exporters Get Credit Insurance
December 30, 04Israeli diamond exporters will be able to minimize financial risk with a new credit insurance. Hailed as the first such agreement in the industry, the Israeli Diamond Exchange yesterday (Wednesday) signed an agreement with an Israeli insurer to provide credit insurance to Israeli diamond exporters.
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At a ceremony at the IDE, IDE President Shmuel Schnitzer and CEO Yair Cohen signed the agreement with the Israeli Credit Insurance Company (ICIC), the largest credit insurer in
Schnitzer said that up to now diamond exporters insured diamond shipments but overseas clients' credit risk insurance did not exist, exposing exporters to clients defaulting on payments for received goods.
“Now that ICIC has decided to join in insuring the industry, diamond dealers will have better access to this type of insurance, which will decrease the level of risk involved in their business,” Schnitzer said.
Cohen said that with the new insurance deal, he expects banks to increase industry credit and /or decrease its cost.
According to ICIC Chairman Ron Weisberg, the first-of-a-kind framework for credit insurance in the diamond industry was put together following an in-depth examination conducted over the past year.