Robust response to the COVID-19 pandemic from the export credit insurance industry

All sides of the market have acted swiftly in response to the crisis, introducing measures to combat the negative economic impact of the pandemic by supporting exporters and facilitating their access to finance

A preliminary report released today outlines a significant cumulative response from insurers of export credit, resulting in four broad categories of support, based on:

• Supporting exporters – through increased flexibility and relaxation of terms for policyholders (exporters) or their clients; expedited processes (approvals / claims processing); some concessions, waivers or flexibility on fees and premium payments

• Maintaining industry capacity to support trade – through increasing capacity, easing restrictions and augmenting private market capacity through new direct cover, reinsurance or top-up by public insurers (ECAs)

• Reducing pressure on cashflow and supporting the supply chain – through increased support for finance indirectly related to exports: e.g. cover for working capital; pre-shipment finance; bonds; domestic suppliers to exporters; import guarantees

• Minimising defaults on existing loans – through directly, or in conjunction with the banking system, facilitating favourable restructuring: deferred payment schedules; extended repayment period; waivers of some interest and fees

Read the full report via the Berne Union website at:Export Credit Insurance Industry Response to COVID-19