Indie media agencies strike 'world first' collective trade credit insurance deal

News 29 Apr 2021 - 2 min read

Indie media agencies strike 'world first' collective trade credit insurance deal

By Staff writer

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Tags: Independent Media Agencies of Australia indie agencies Covid trade credit insurace

The Independent Media Agencies of Australia (IMAA) has negotiated what it thinks is a world-first group trade credit insurance deal for its members - which had been penalised as insurers hiked premiums during Covid, leaving some having to ask clients for cash upfront.

What you need to know:

Deal saves some members up to 75% on what is their biggest single cost.
As insurers de-risked and hiked premiums when Covid hit, some were left having to ask clients for cash upfront or to carry the costs themselves during a liquidity crunch.
"This new group deal is a massive win for IMAA members and one which will make us all sleep better at night." sad association Chair Ant Colreavy.

The Independent Media Agencies of Australia (IMAA) has negotiated what it thinks is a world-first group trade credit insurance deal for its members.

Trade credit insurance protects agencies from bad debts including unpaid invoices caused by client bankruptcy and receivership, default, political risks and other reasons. The policy is usually commensurate with the value of advertising spend and the payment terms agreed with each client. Although rarely used, it is one of the highest costs for indie media agencies.

The group deal, successfully brokered by the IMAA, will save members up to 75%.

“We uncovered through our IMAA Pulse Survey that members wanted to look for ways they can save money as a group on big-ticket items. One of the biggest expenses for independent media agencies is trade credit insurance, so for the last three months, we have explored a group deal for IMAA members," said IMAA General Manager, Sam Buchanan.

“This is an absolute game-changer for us, and the industry and we are thrilled to be able to offer this important cost saving initiative to our members.”

The IMAA held a webinar for members this week, hosted by Buchanan, IMAA Chairman and Sandbox Media Director Ant Colreavy and a trade credit insurance specialist to explain the group deal, which was received enthusiastically by members.

Colreavy said: “Many independent agencies were impacted during the Covid-19 pandemic, which saw some trade credit insurers effectively penalise Australian-owned businesses as they ‘de-risked’ themselves. Limiting the amount of trade credit meant that agencies were left with no other option than to ask their clients for cash upfront or carry the exposure themselves. This new group deal is a massive win for IMAA members and one which will make us all sleep better at night.”