Mandatory EU e-Invoicing: 5 transformative benefits for credit insurance

EU e-Invoicing standards are expected to reshape how credit insurers assess risks and tailor coverage. How can the industry maximize the benefits?

Since last year, EU member countries have been able to enforce electronic invoicing in line with EU regulations. Poland and Romania have led the way, with mandatory e-invoicing since July 2024. Some countries are expected to follow suit later this year, and others in 2025 and 2026. 

The EU standard requires invoices to be sent and received in a standardized, structured data format that provides for the automatic reading of the data, enabling suppliers to prepare and send invoices to multiple customers without the need to customize the format or transmission method for individual trading partners. 

The credit insurance industry stands to benefit in several ways:

Enhanced data accuracy

Standardized, accurate, and current data on invoices offer credit insurers valuable information for underwriting assessments. This may not only enable them to make more accurate decisions and reduce their exposure to risk, but standardized data can potentially reduce the overall cost of performing assessments. 

Faster information flow

E-invoicing will increase the speed of information flow between buyers and sellers, which may be a game-changer for credit insurers - if they can receive this information. With real-time data on insured parties, credit insurers would be able to assess risks and process claims at a faster pace than before. In an increasingly digital world where immediate responses and decisions are a business-as-usual expectation, e-invoicing enables insurers to make swift, well-informed judgments and help credit insurance users respond faster to business opportunities.

Reduced fraud and errors

Digitalizing and standardizing invoicing may help safeguard against fraud and errors in invoicing and payments. Credit insurers can make more accurate and confident risk assessments by reducing discrepancies and ultimately face fewer claims and losses.

Better risk management

The new standards may open the door to more comprehensive monitoring of trading partners. With more information available on their financial health and payment behaviors, credit insurers can identify risks earlier and more accurately - if they are given access to the information. This information would allow them to adjust their coverage and terms appropriately. The result is a more strategic and effective risk management strategy that shields credit insurers and their customers from otherwise unforeseen risks.

Customised credit insurance solutions

One of the most transformational outcomes of e-invoicing is its potential to usher in a new era of customized credit insurance solutions. With more granular, accurate data at their fingertips, credit insurers can design policies tailored to specific trading relationships and payment patterns. This level of customization ensures that insured businesses receive coverage that aligns more closely with their requirements and allows them to respond more quickly and confidently to opportunities as they arise. As a result, credit insurance becomes not just a safety net but a strong tool for business growth and resilience.

Leveraging the benefits

The potential benefits of the EU e-invoice standards are far-reaching for credit insurers and their customers. As businesses continue to navigate the evolving global trade landscape, integrating technology and standards in invoicing has the potential to further solidify trade credit insurance as a critical service. Whilst there is strong potential for the industry overall to take advantage of it, credit insurers must be prepared to embrace transformation. Those that do will be best placed to capitalize on the new standard as a further step in the digitalization of credit insurance.