BHETA’s business support provider, Let’s Talk Credit, shares AON Risk Solutions’ review of credit insurance outside the UK:
The EU Commission have recently released this Update in regards to Export Credit Agencies (ECA’s) authority. Previously, UK Export Finance have offered Credit Insurance and Trade Finance to support UK Exporters trading in exotic/high risk territories. However, have been restricted in offering insurance for trade with OECD & EU customers.
With the latest updated due to the Covid-19 crisis, the EU has relaxed restrictions on UK Export Finance. UKEF now have authority to offer Credit Insurance to UK companies exporting to the EU, NZ, Australia and many other previously restricted territories. UKEF will typically accept risk that insurers are unwilling to write.
In light of continued economic shutdown there will be credit limit reviews for countries such as Italy, Spain, Germany etc. However, with this latest update UKEF can be used to step in to provide insurance coverage. UKEF is available to both insured and uninsured companies.
Source: AON Risk Solutions, April 2020