ROLE OF CREDIT/MORTGAGE INSURANCE 
ROLE OF CREDIT/MORTGAGE INSURANCE

Specialized insurance products protect lenders and borrowers, shielding businesses such as exporters from customer defaults and facilitating the financing of mortgages and other transactions. These products include credit insurance for short-term receivables, credit life insurance and mortgage guaranty insurance.
CREDIT INSURANCE FOR CUSTOMER DEFAULTS

Credit insurance protects merchants, exporters, manufacturers and other businesses that extend credit to their customers from losses or damages resulting from the nonpayment of debts owed them for goods and services provided in the normal course of business. Credit insurance facilitates financing, enabling insured companies to get better credit terms from banks.
CREDIT INSURANCE, 2003-2007 (1)

($000)




Year
Direct premiums written
Annual percent change
2003$869,54318.8%
20041,053,99621.2
20051,206,02014.4
20061,398,76216.0
20071,768,91226.5
(1) Before reinsurance transactions, excluding state funds.

Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.