2020 H1 Data: No increase in claims paid but contraction in new commitments

No increase in export credit insurance claims paid in the first half of 2020, but new commitments have contracted in both short term and medium / long-term business

London, 14 September 2020 – A preliminary report on the business activity of Berne Union Members in the first half of 2020 indicates that the expected spike in claims due to the COVID-19 pandemic has not yet been realised.

In contrast, export credit claims paid in 2020 H1 were 16% lower overall than for the first half of 2019. This can be partially attributed to a decline in new commitments during the same time, largely attributed to a general decline in exports, with a 23% drop in new medium and long-term (MLT) commitments reported and a 4% drop in aggregate credit limits issued under short term (ST) export credit insurance policies.

In MLT business, both public and private insurers’ new commitments declined, while for short term, private insurers’ commitments fell by 8%, whereas those of public insurers rose by the same percentage. Private insurers’ ST claims / commitments ratio came down marginally, while this increased for public insurers, as well as for both providers, in their MLT business.

Berne Union President Beatriz Reguero comments of the claims data that “the fact that we have not yet seen a significant increase in claims payments is in large part due to protection afforded by various forms of fiscal support from governments as well as by the quick reaction of lenders and insurers in restructuring deals when necessary. The consensus amongst the industry is that we can expect to see a more obvious change in claims trends towards the end of the year.”

• Read the full press release here: September 2020 Press Release
• Latest industry data here: 2019 FY Industry Data Report
• Research on COVID response here: Export Credit Insurance response to COVID-19