Credit insurance: the role, missions and challenges of COFACE

The Francophone Business Forum (FFA), chaired by Mr. Stève GENTILI, president of BRED Banque Populaire, and the firm Carbonnier, Lamaze, Rasle et associés (Carlara), organized a round table at the end of 2017 on the Coface group, the role and missions of the credit insurer, which was presented by Mr. Xavier DURAND, its managing director since 2016.

A graduate of École Polytechnique (1983) and a civil engineer, Mr. Xavier Durand notably served as Deputy Managing Director of Banque Sovac Immobilier from 1994 to 1996. He then joined the General Electric group, as Mr. Gentili noted. Director of Development for the Americas for GE's automotive finance division in Chicago, Mr. Durand subsequently became Director of Manufacturer Programs and Sales in the United States in 1998. In March 2000, he joined GE Capital Bank in Paris as Managing Director of Sales and Business Development. Promoted to CEO of GE Money in France in June 2002, he was appointed CEO of the Southwest Europe region in November 2005. In 2008, he became Managing Director for Western Europe, Russia, and Latvia at GE Capital Global Banking, before being appointed CEO of GE Capital Asia Pacific, based in Japan, in 2011. Mr. Xavier DURAND was then Director of Strategy and Development at GE Capital, based in London, from 2013 to February 2016, when he joined Coface as Chief Executive Officer.

Adapting to make Coface the most agile player in the sector

Following the severe crisis of 2008, the wave of business failures, and an increasingly challenging international environment, Coface must constantly adapt. Upon his arrival in 2016, Xavier Durand launched the "Fit to Win" plan to make the group the most agile player in the sector (see BQ, September 22, 2016). In today's world, we face a multitude of risks that are impossible to anticipate, he stated. Given its complexity, it is indeed illusory, even dangerous, to rely on a single scenario, as the unforeseen has become the norm. This necessitates considering various hypotheses. This is where Coface can help businesses, argued its CEO. It requires the ability to adapt and having the appropriate infrastructure. In this context, agility is key, he asserted.

The "Fit to Win" plan is structured around three strategic priorities. Leveraging its technical infrastructure and its network of over 1,500 risk specialists worldwide, the first priority focuses on strengthening risk management and information quality by investing in technology, recruitment, and training. Improving operational efficiency and customer service is the second priority. In this regard, modernized processes and organizational streamlining, enabling better cost control, are expected to generate savings of approximately €30 million in 2018. Finally, the third priority is based on implementing differentiated growth strategies. Coface intends to continue leveraging its global network while prioritizing value creation over growth at any cost.