Demand for export credit insurance remains strong

Demand for export credit insurance remains strong, with the first quarter of the year reflecting increased demand, particularly for short-term business, according to the Q1 2021 Berne Union Business Confidence Survey.

Export credit agencies reported increases in all business areas, with a strong appetite for liquidity and continued sales and trade considered the two key drivers.

Berne Union president, Michal Ron said the export credit insurance industry continues to play a vital role supporting the finance and liquidity of exporters during a challenging time. “Many ECAs are entering an extremely busy period this year with a bolstered mandate, due to their role of delivering or supporting COVID response measures,” he added.

For the private market Berne Union says increased demand for medium and long-term cover in Q4 2020 is expected to even off in the first quarter of this year.

Although emerging claims situations were reported to have dipped at the end of last year, the aggregate expectation is for an increase in claims payments during the coming months.

Both public and private underwriters are balancing their risk appetite between measured optimism concerning the economic environment, and strong expectations that claims paid this quarter will likely increase.

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