Prague Club Committee
Originally formed in1993, as a separate venture, the 'Prague Club' became the newest Committee of the Berne Union in May 2016, following a successful vote to integrate the two organisations.
The PCC continues to fulfil the objectives of the original Prague Club:
- to provide a community to address the particular issues faced by newly formed, local/regionally focused or smaller scale members of the export credit and investment insurance community
- to provide information, resources and support for nascent export credit organisations as they proceed through their formal establishment and development stage
The PCC currently consists of 38 member companies: A diverse mix of public, private and multilateral agencies with widely differing business models and products. The majority of these come from smaller home markets - predominantly in Eastern and Central Europe, Middle East, Central Asia and African regions - with a common objective to support the diversification of national exports.
Many PCC members’ countries are internationally assessed as being relatively higher risk markets, resulting in reduced risk appetite or capacity from external insurers. However, the local / regional focus of PCC members means that they often have a different perspective and approach to assessing and managing these risks, precisely because they have a closer understanding of the local companies, political environment, and the culture and business norms.
Business and products
PCC members provided support for almost USD 39 billion of new business in 2016. While this is only a small fraction (around 2%) of overall Berne Union members' business, it has grown remarkably in recent years - up by almost 40% on 2015 figures.
On the whole volumes of written business are much smaller than within the other committees, both in terms of number and size of transaction. The focus is often on support for smaller industries, and for smaller clients - business models are therefore also quite different to that of large international credit insurers.
- Most PCC members offer products relating to short term trade credit insurance (80% of annual underwritten volumes), including buyer credit, supplier credit and some forms of receivables finance
- Many also provide medium to long term export credits, and political risk and investment insurance
- pre-shipment working capital and bond insurance or guarantees are new and evolving solutions offered by a number of PCC members
Areas of focus
PCC meetings include in-depth discussions on the usual areas such as:
- members' business trends and experience
- the macro trade environment
- technical insurance issues around e.g. underwriting, risk assessment, claims management etc.
Because of the PCC's unique objectives, important focus areas of particular relevance also include:
- product development; pricing; marketing
- digitisation and automation
For issues specific to the PCC, contact the Berne Union Secretariat