Event report: BU Claims and Recoveries Specialist Meeting 2022 – London

Romanie Peters and Bram Van Hyfte from Credendo ECA reflect on June’s BU Claims and Recoveries specialist meeting in London
Romanie Peters
Romanie Peters
Senior Company Lawyer, Legal and Claims Coordinator, Credendo

From 9 to 10 June 2022, UK Export Finance (UKEF) hosted a successful edition of the Berne Union’s Claims & Recoveries Specialist Meeting in London. The agenda of the two-day meeting was filled with plenty of interesting topics to discuss and it resulted in a lively and social gathering with industry peers.

On the first day, we started by diving into the BU statistics on claims and recoveries which showed that the COVID-19 period has generated, in general, fewer claims, except in the aviation and transport business. In the latter sector, mainly UKEF, BPI France and EDC were hit.

Further, the participants were treated to expert insights into the huge impact of sanctions on the insurance sector in light of the Ukraine crisis. The far-reaching scope of the sanctions, and the financial consequences of any possible breach thereof, were some of the highlighted items insurers were made aware of, among others.

In addition, in one of the breakout sessions we discussed the difficulties of receiving payments and recoveries due to the Russian countersanctions. The exchange of views among insurers was most valuable.

The second main discussion focused on the claims experience relating to the offshore services industry. This was – together with the aviation and general transport business – hugely impacted during COVID-19, leading to an increase of claims. With the worst being behind us, the current market outlook is expected to be positive, as the transition towards greener energy and the increased focus on energy security will lead to more greener and sustainable investments in the offshore gas, oil and wind sectors.

These main discussions were interspersed with more intimate breakout sessions on a variety of subjects. The ‘Country Café’ sessions allowed participants to share their claims and recoveries experiences with debtors based in countries such as Ethiopia, Zambia, Kenya, and China.

There were also a lot of talks about sovereign claims and it was interesting to go into detail on sovereign claims restructuring, especially on what the expectations of the private sector and the non-Paris Club members are in that regard. An increased interest was noted in the process of the Common Framework.

During the other breakout sessions, participants engaged into more technical, often legal discussions, such as the sale of restructured debt before or after compensation and the working mechanisms of assignment and subrogation clauses.

The second day of the Claims & Recoveries Specialist Meeting kicked off with a presentation by the Canadian ECA, EDC on how automation, digitisation and AI can make the handling process of (smaller) claims more efficient and how it can increase both the job and client satisfaction in that regard.

The key takeaway was that by setting the right thresholds and by repeatedly evaluating and adjusting the automated process, progress can be made, even if budgets and resources are limited. Subsequently, expert insights were given on the best practices in drafting contractual arbitration clauses in both commercial and insurance contracts and the enforcement thereof.

Given the increasing international and more complex nature of transactions and notwithstanding the high cost of such proceedings, arbitration has proven to be an effective instrument in dispute resolution, especially in these jurisdictions where local court proceedings lack time-wise efficiency. It also offers a non-biased case approach.

Finally, this great learning opportunity was concluded with two member presentations on the handling of specific claims and the challenges related to them.

Our overall conclusion: we were very grateful for the great in-person experience and glad to have participated in the lively debates!

More BUlletin Publications

Celebrating 90 years of supporting trade and investment


Celebrating 90 years of supporting trade and investment - 1934 - 2024

Reflecting on Berne Union’s origins and celebrating its achievements. What does the future hold?


Climate Working Group: The continuing momentum for change


Climate Working Group: The continuing momentum for change

The Berne Union’s Climate Working Group is proving a helpful forum for sharing good practice. How is it progressing, and how can our industry continue to help with this initiative?

Claims: Controling Chaos, and Risk Versus Reality


Controling Chaos, and Risk Versus Reality

In this edition we explore BU claims data and its relation to predicting risk since the pandemic, we also feature a broker's eye view of the state of the CPRI market, the bold restructuring of Denmark's investment and export financing with EIFO, how EDC is looking at ESG risks and ...

Landmark modernisation for OECD Arrangement


Landmark modernisation for OECD Arrangement

A bold agreement for the Arrangement marks a positive development for our industry. Also featuring
digital access to export finance for China SMEs, challenging the 'China debt trap' narrative for Africa,
insolvency trends, analysing service ...

What's on the horizon for 2023?


What's on the horizon for 2023?

The pick of key issues to look out for in 2023 – from macro trends, potentially choppy seas for smaller ECAs,  possibilities for using Islamic finance in the renewable energy transition, China’s reopening, a bumpy CPRI outlook, and reinsurance complexities. 

Authors look at...

Digitalisation as a business leadership imperative


Digitalisation as a business leadership imperative

Technology-driven trade and client interaction are nothing new. But increasing investment in digitalisation of fundamental business processes and decision making is driving a new way of looking at trade finance and risk underwriting. Authors highlight successes and challen...

Mobilising Africa's Potential


Mobilising Africa's Potential

Despite the challenges there are many positive opportunities emerging for Africa today

Curated by the BU Sub-Saharan Africa Working Group, authors for this special edition of the BUlletin explore areas of growth and the role of different sources of international finance tapping this

Ripples and After-effects


Ripples and After-effects

exploring the multiple secondary impacts of both the pandemic and the war in Ukraine

from sovereign risk in Africa, to energy security, political violence and the private CPRI market

Shocks and Short Circuits: The Rewiring of Global Trade


Shocks and short-circuits: The re-wiring of global trade

The bright shoots of economic growth are under threat once again
Assailed by commodity supply shocks and political instability exacerbated by the war in Ukraine
Contributors this month look at the complex impacts on trade and investment across developed and...

Diverging Risk


Some predict that 2022 may finally bring us beyond the thrall of the COVID-19 pandemic

But the events of past two years have brought significant divergence of risk across economic and geographic boundaries

Authors this month look at how this is playing out in a range of cases

New Foundations


If the global economy is truly on the road to recovery how can we build the surest path to sustainable growth in our new net-zero world?

New foundations in tech, data, and cooperative frameworks may help guide us into the next phase

Illuminating Climate


Now widely recognised as an economic as well as environmental imperative
The momentum to tackle climate change is building
Changing perspectives, policy, products and processes across the export credit industry

In search of claims


Where is the avalanche of claims and insolvencies expected to emerge from COVID-19?
The picture so far is uneven across geographies, sectors and business lines
And for the future? Well, it depends...

Cross-roads for Africa's recovery


The economic impact of the COVID-19 pandemic on Africa has been considerable and the path of recovery depends on maintaining the support of local, regional and international stakeholders. But which approaches can best build upon the opportunities presented by growing intra-regional trade, and investment in sustainable infrastructure?

Navigating the Brave New World of Trade


With the wounds of the pandemic still under triage, a rebound in trade could the best hope for governments and businesses alike.
But trade is under immense pressure from myriad directions.
How can we maintain supply of finance, in the face of growing demand and irregular patterns of risk?