Export credits: Private insurers step out of the shadows

With their huge capacity and state backing, ECAs for many years dominated the market for absorbing risk on longer-dated export credits. That’s changed, say private insurers, who argue the ECA mantra of only providing coverage that the private market can’t handle no longer holds true. Helen Castell reports.

Comments (5)

  • Qingyuan Zhang
    Qingyuan Zhang, John Deere Financial Services 16 May 2016

    We used a lot of ECA programs prior to 2008 but now rely more on private insurers becuase of the markets we support, the lead time for appproval etc.

  • Pietro  Amico
    Pietro Amico, Danieli 16 May 2016

    As a multi-country exporter, I appreciate very much PRI cover as it relieves the supply chain and the manufacturing from strict origin constraints.... Still bringing an ECA on board is a real boost for challenging projects. Combination of the two instruments is more and more the way forward in my view.

  • Merlijn van der Mark
    Merlijn van der Mark, Ministry of Finance Netherlands 13 May 2016

    Thanks Fabrizio

  • Fabrizio Mazza
    Fabrizio Mazza, JLT Speciality 13 May 2016

    Private insurers routinely cover up to 90% on both country and commercial risks, and up to 95% when covering tied commercial loans.

  • Merlijn van der Mark
    Merlijn van der Mark, Ministry of Finance Netherlands 13 May 2016

    There is also the matter of coverage, I don't believe there are many private insurer willing to go much higher than 80% on country risk.

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