Alleged fraud scandal in the commodities sector: Zurich and Allianz also did business with the controversial trader Radiant World
The two insurers are said to have secured the Asian commodity trader against payment defaults, the "FT" writes. Increasingly, Swiss financial and trading houses are being affected by the case.
Zurich and Allianz have provided insurance to Radiant World, an Asian iron ore trader, against payment defaults. The insurers' policies, known as commodity credit insurance, were meant to protect Radiant from non-payment by its trading partners. According to the Financial Times, one of Zurich's policies had a coverage sum in the tens of millions of dollars, while Allianz's coverage sum was smaller.
Radiant World is under investigation for allegedly using fake documents and numbers in its transactions, and several financial institutions, including some in Switzerland, have suspended their business with the company.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
