Trade credit insurance claims expected to surge

(Asia Insurance Review, Singapore, 23 September 2020) A Berne Union report notes that the expected spike in trade credit claims resulting from the COVID-19 pandemic has not yet been realised, according to a preliminary report on the business activity of Berne Union members in the first half of 2020. Export credit claims paid in the 1st half of 2020 were 16% lower overall than for the first half of 2019. The fall can be partially attributed to a decline in new commitments during the same time which has been largely caused by a general decline in exports. A 23% drop in new medium and long-term commitments (MLT) was reported and there was also a 4% decrease in aggregate credit limits issued under short-term (ST) export credit insurance policies. In the MLT business, both public and private insurers’ new commitments declined. Meanwhile, for the short-term, private insurers’ commitments fell by 8%, whereas those of public insurers rose by the same percentage according to The Berne Union.