Overview
The Credit Insurance Application (CIA) is a data and workflow tool that transforms how banks and other lenders manage credit insurance, risk participation agreements (RPAs) and other forms of risk distribution.
CIA helps firms achieve targets for risk-weighted assets and regulatory capital by automating how they reduce credit exposure while mitigating operational and financial risk in the process.
It replaces a series of manual processes typically managed on spreadsheets with an efficient, integrated solution that consolidates global insurance portfolio data and enables credit risk teams to track deals, manage the insurance lifecycle and report on portfolio performance.
CIA is used in support of a range of commercial-, investment- and transaction banking activities, including commercial lines, term loans, trade finance, project finance, letters of credit and bank guarantees.
Industry Challenges
Regulatory capital requirements: achieving targets for risk-weighted assets demands effective risk distribution channels. When these processes are not scalable, it constrains commercial and investment banking businesses.
Manual processes: CRI data typically exist across multiple spreadsheets (insurance RFQs, market reports, political risk assessments), necessitating manual data entry and synthesis. This complicates risk assessment and management of policy documentation, increasing the likelihood of errors and slowing down processes.
Operational risk: Manual tracking of risk portfolios exacerbates operational risk, through lack of effective validation and monitoring. This includes ensuring accurate data before proceeding with deal stages and maintaining real-time views of counterparty risk limits.
User Benefits
Optimized risk exposures: Automating risk distribution enables firms to scale risk offsets and meet targets for risk-weighted assets.
Improved accuracy and data quality: The application reduces errors, simplifies reconciliation and establishes a unified data source for risk distribution portfolios
Enhanced monitoring and transparency: System-wide, real-time monitoring insurance portfolios and associated risks provides unmatched intelligence
Increased capacity for risk distribution: Productivity gains enable CRI teams to handle more business volume
Features & Capabilities
Automated, end-to-end deal workflow
- Deal pipeline management monitors the progress of deals from initial inquiry to the point of policy binding, with real-time updates to manage operational risk efficiently
- Quote request capture supports both manual and API-driven capture of detailed loan and insurance request information, integrating seamlessly with loan booking systems.
- NBI workflow and Policy Binding manages the sending of non-binding indication requests to the insurance market, captures broker responses and facilitates approval management and policy binding.
Insurance portfolio monitoring
- Auto-management of premium payments and other event schedules, including alerts
- Limit and exposure management to ensure balanced risk distribution
- Policy event and compliance calendar with associated alerting
- Counterparty management via insurer, broker and borrower database
Reporting and analytics
- Extensive reporting capabilities for deals, portfolios, policies and other business metrics
- Tracking for internal commissions and financial contributions from risk distribution activity
- Comprehensive document management
Dashboards and alerts
- Customizable user interface and role-based dashboards
- Task and event alerting
Integrations:
- Loan capture: CIA integrates with LoanIQ, ACBS and other booking systems
- Credit policy: connects to bank systems for limits
- Counterparty management: integrates with counterparty reference data
- Back-office: includes APIs for back-office systems
Customization & Extensibility:
- Configurable Risk Management & Policy Workflow – Users can define custom risk limits, policy binding workflows, and deal tracking rules to match internal processes.
- API & SFTP Data Integrations – Supports automated data ingestion from loan systems, counterparty management tools, and back-office systems.
- Custom Alerts & Dashboards – Firms can configure custom notifications for policy events, risk limits, and premium payment schedules, ensuring proactive risk management.
Security & Compliance:
- Role-Based Access & Policy Controls – Granular access permissions ensure that only authorized users can modify policies, approve insurance deals, or override risk limits.
Performance Metrics & Scalability:
- Scalable Risk Portfolio Management – Designed to handle large volumes of insurance deals, risk policies, and exposure limits across commercial and investment banking.
- Low-Latency Processing – Supports real-time updates for deal tracking, premium calculations, and counterparty risk assessments.
- Cloud & On-Premise Deployment – Can be hosted in cloud environments for global accessibility or deployed on-premise for firms with strict data residency requirements.
Component Breakdown
- Open Deals Management: Tracks the entire lifecycle of credit insurance deals, from RFQs to policy binding.
- Policy Management: Manages RFQs/NBIs, counterparty risk limits, and portfolio risk distribution, ensuring efficient risk tracking.
- Fee & Premium Calculators: Automates fee calculations, premium payments, and financial tracking for insured deals.
- Analytics & Reporting: Provides real-time dashboards, risk exposure summaries, and financial impact reports for decision-making.
- Notifications & Alerts: Ensures timely compliance checks and policy event tracking, alerting risk and treasury teams about critical updates.
Event Processing Flow
- Data Ingestion & Deal Capture: The system ingests loan and client data via API, SFTP, or manual entry, initiating the policy workflow.
- Risk & Exposure Assessment: The counterparty risk limit module evaluates exposure levels and ensures compliance with internal credit policies.
- RFQ/NBI Processing & Approval: The platform captures RFQs and NBI requests, enabling brokers and insurers to respond via automated workflows.
- Policy Binding & Compliance Checks: Upon final approval, policies are bound, premium schedules are set, and compliance tracking begins.
- Reporting & Portfolio Monitoring: The system continuously monitors insurance portfolios, manages policy events, and generates compliance reports.
