Manufacturing

We understand the unique challenges faced by commodity traders and offer specialised insurance and trade finance solutions to mitigate risk and improve financial stability.

Switzerland’s manufacturing industry is a mainstay of the country’s economy and is known for its precision, innovation and high quality. Switzerland is recognised worldwide for its advanced manufacturing capabilities, particularly in areas such as precision machinery, pharmaceuticals, electronics and luxury goods. These industries not only contribute significantly to the country’s GDP, but also play an important role in the export economy. However, due to increasing global competition, technological advancements and changing consumer demand, the landscape is rapidly evolving and requires Swiss manufacturers to constantly innovate and adapt.

Despite the sector’s strengths, Swiss manufacturers face some challenges in securing insurance and trade finance. The high value of many Swiss exports, combined with the volatility of international markets, exposes these companies to significant financial risks.

Credit risks, geopolitical uncertainties and fluctuating market conditions pose a threat to the stability of cash flows and the overall financial health of these companies. Compliance with international regulations and the need for comprehensive risk management strategies add to the complexity.

Addressing these challenges requires a robust framework of insurance solutions, such as credit insurance to mitigate non-payment risks, commercial liability insurance, especially with regard to product liability and product recalls, directors and officers (D&O) insurance to attract the best talent, and cyber insurance to protect against digital threats and business interruption caused by them. Effective trade finance solutions are equally important. They enable manufacturers to secure the necessary financing and manage cash flow efficiently to ensure sustainable growth and resilience in a competitive global market.

Key insurance policies for maufacturing 

Credit insurance

is essential for manufacturers, as it protects against the risk of non-payment, both commercial (e.g. insolvency of the buyer) and political sphere (e.g. foreign exchange transfer restrictions). By taking out credit insurance, manufacturers can keep their cash flow stable, offer competitive credit terms and enter new markets with confidence, knowing that potential financial losses are covered.

Commercial liability

insurance, with a focus on product liability and product recall, protects manufacturers from financial loss due to defective products causing injury or damage, ensuring the company can recover quickly and maintain consumer trust.

D&O liability insurance

protects your executives’ personal assets from the personal liability arising from their management decisions and is therefore essential for attracting top talent.

Cyber risks insurance

is critical as manufacturers increasingly rely on digital technologies and networks to ensure business continuity and protect sensitive data from cybercriminal activity.

Fraud insurance

is critical to protecting a company’s assets and financial health, especially at a time when sophisticated fraud schemes are becoming more prevalent.

Key manufacturing industries in Switzerland

Precision machinery & tools

  • Machining & automation systems
  • Manufacturing & production equipment
  • Measurement & control technology

Pharmaceuticals & biotechnology

  • Drug discovery & development
  • Biopharmaceutical manufacturing
  • Medical devices & diagnostics

Hi-tech electronics

  • Semiconductors & microelectronics
  • Consumer electronics
  • Industrial electronics
  • Telecommunications equipment

Chemical manufacturing

  • Specialty chemicals
  • Polymers & plastics
  • Performance materials

Case study: credit insurance for a precision machinery manufacturer

Company profile: A Swiss manufacturer of high-precision industrial machinery used in automotive and aerospace industries.

Challenge: The manufacturer aimed to expand into emerging markets in Southeast Asia, where payment risks were perceived to be high. The company’s growth strategy required extending credit terms to new buyers, which increased the risk of non-payment.

Solution: The manufacturer partnered with a credit insurance provider to cover potential losses from buyer defaults. The insurance included pre-shipment risk coverage, providing protection from the time an order was confirmed.

Outcome: The credit insurance enabled the manufacturer to secure several large contracts with new buyers in Southeast Asia. Over the next year, the company’s exports to the region increased by 30%. When a significant buyer in Indonesia declared bankruptcy, the insurance claim was processed efficiently, and the company recovered 90% of the outstanding amount. This financial stability allowed the manufacturer to maintain its operations and pursue further market expansion.

Why choose Raxell?

Raxell excels in the Swiss manufacturing sector with its deep industry expertise, comprehensive insurance solutions, and tailored trade finance advisory services. We collaborate closely with you to understand your unique needs, developing strategies that protect your business, enhance financial stability, and support sustainable growth in a dynamic market. Choose Raxell for expert guidance and robust protection.