APAC banks are being urged to consider non-payment insurance (NPI) to protect against the financial consequences of default by a counterparty. According to WTW, a leading global advisory, broking, and solutions company, APAC-domiciled banks account for less than 15% of the global NPI market, worth over $160bn. The company suggests that APAC banks should add NPI to their risk management toolset, especially given the changing economic and commercial backdrop in the region. The adoption of NPI can help banks participate in new asset classes or with larger holds while remaining comfortable with their exposures.
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