// definition
Loan non-payment insurance
Insurance against defined lending losses
Short definition
A contract between an insurer and a lender covering specified losses from non-payment of an insured debt. The policy determines the scope and conditions of compensation. Recognition as a credit risk mitigation technique also depends on the applicable prudential rules.
risk atlas
Knowledge map
Intuition
The lender gains a claim on the insurer whose payment remains subject to the policy.
Related analyses
Primary sources
- EBA, Report on credit insurance, October 2024Paragraphs 7–9: definition and scope; analysis of prudential eligibility.