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Record Amount of Trade Credit Insured By Berne Union Members

LONDON, 30 April 2013.  Members of the Berne Union – International Union of Credit & Investment Insurers – saw the value of credit and investment insured in 2012 grow by 2.4 per cent, reaching in excess of US$ 1.8 trillion.

This matches the 2.4 per cent growth in exports for 2012 according to the United Nations Statistics Division. Collectively, Berne Union members insured more than 10 per cent of international trade in 2012.

Of the total business volume, about US$ 1.5 trillion represented short-term (ST) export credit insurance with credit terms up to one year, while medium and long-term (MLT) export credit insurance for periods in excess of one-year amounted to more than US$ 180 billion. New transactions covered in investment insurance (INV) reached a record US$ 94 billion. Claims paid in ST export credit insurance rose again in 2012, following a drop in 2011, largely due to higher insolvency rates in Europe. Claims paid in MLT export credit insurance stayed at the same, relatively high, but sustainable level experienced in 2011. The combined claims paid to exporters and investors in 2012 in all lines of business totalled US$ 4.7 billion.

Since the beginning of the global financial crisis in 2008, credit and investment insurers have paid in excess of US$ 20 billion to their clients to compensate them for losses suffered due to defaults by buyers or other obligors.

About the Berne Union: The Berne Union (International Union of Credit & Investment Insurers) is the leading international association for the export credit and investment insurance industry. It works for cooperation and stability in cross-border trade by supporting the international acceptance of sound principles in export credits and foreign investments and by providing a forum for professional exchange among its members.

Source: Berne Union

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