With parallel insurance and reinsurance OeKB makes an important contribution in cases where Austrian exporters are participating in joint projects abroad.

Your situation

You are an Austrian company that is participating in a joint project abroad and need coverage for it.

Either, as one of a number of participants in this joint project, you have a direct contract with the foreign purchaser and your own payment claim against the purchaser in the foreign country, independent of the other suppliers.

Or you are the main contractor in a joint international project and the direct contact for your foreign contractual partner. The other project participants are sub-contractors and have payment claims against you - irrespective of whether you receive payment from the foreign partner or not.

Our service: We assist with joint international projects!

A G1 export guarantee, which covers commercial and political risks which may arise in the course of your export activities, also covers you for joint international projects. By working together with other export credit agencies (ECAs) we support exporters in multi-sourcing projects in foreign markets and facilitate financing.
If you are one of a number of project participants acting independently, then each participant has its own export credit agency (ECA) on board. OeKB can coordinate with the other ECAs within the framework of the parallel insurance.
Should you exceed country limits or encounter a foreign share that is too high when insuring the entire project, OeKB will review whether reinsurance with the ECA involved is possible for the supplier portion from the foreign country.

Whether you are an independent sub-contractor or the main contractor, get in touch with us as soon as possible to find the most suitable solution for your project.

As the main supplier, can I choose the main insurer?

No. The main insurer is the export credit agency of the country in which the main supplier is domiciled. Generally, this is also the country where the greater part of the exports for the transaction in question (by value) originates from.

Who should apply for reinsurance, where and for what amount?

The main supplier files a guarantee application with OeKB (form G1) for the total contract value. The reinsurance application to the national ECA of the subcontractor is filed not by the exporter but by us, based on the main supplier's written permission to disclose the relevant project data.

Is there a minimum contract value or minimum credit period for reinsurance?

No. However, in some cases, it will have to be determined whether reinsurance is worth the cost, e.g. for short repayment periods or where the foreign content limit is only slightly exceeded.

As a subcontractor, do I need to inform the reinsurer about the project beforehand?

In principle, no: the reinsurance represents a contractual relationship between the main insurer and reinsurer, so the reinsurer directs any queries to the main insurer. Nevertheless, in more complex projects it can be useful and appropriate for you to inform the reinsurer beforehand, especially if the reinsurer requests this, in order, for instance, to confirm the national supplier's interest in participating in the project.

Does reinsurance require the main supplier to provide additional documentation?

Strictly speaking, nothing changes for the exporter in terms of the application. However, experience has shown that it is helpful to provide an exact description and breakdown of the different supplier portions (including the identity of the subcontractors) as soon as possible,

Does the subcontractor have to be a client of the reinsurer?

No. The reinsurer essentially evaluates a request for reinsurance based only on the merits of the project itself, particularly on the risks associated with the buyer and the buyer country. However, to form a more complete picture, the reinsurer will gather information about the subcontractor and, in the case of complex projects, contact the subcontractor directly.

Does the main insurer add an additional charge for its administrative costs? Also, what kind of premium applies for reinsurance in general, and how is payment made?

Ideally, no additional costs are incurred. The charge is calculated by the main insurer in accordance with its fee system, and the reinsurer's portion is forwarded to the reinsurer. Nonetheless, in individual cases, the insurer(s) and reinsurer can agree that the reinsurer is paid the premium which is required under its fee system to cover the risk that is to be reinsured. No additional processing fee is charged. Reinsurance premiums are always payable up front.

Does reinsurance automatically cover pre-shipment risk as well?

No. Insurance for pre-shipment risk has to be handled separately. If you wish to have such insurance, we advise you to contact us before negotiating the supply contracts, as the question of which ECA will insure the subcontractor’s manufacturing risk depends on the contractual relationship between the main supplier and subcontractor.

Is OeKB as reinsurer able to provide higher-than-normal percentages of cover?

A characteristic of reinsurance, and an advantage for the exporter is that you obtain cover on uniform terms and conditions. As a reinsurer, OeKB generally adjusts its terms to those of the respective main insurer, including a higher percentage of cover. However, no insurer is required to provide reinsurance in excess of the typical percentage it insures.

Can foreign content from third countries (including local costs) be reinsured?

Yes. The allocation of third-country content among the participating ECAs usually corresponds to the relative proportions of the contract value generated. The same is true for local costs.  

What happens if the reinsurer declines the request for cover?

In order to obtain insurance for the whole project nonetheless, the exporter should first attempt to outsource the subcontractor portions to other countries or to reduce the foreign content. If this is not technically possible, there is still the option of risk-sharing between the exporter and the Republic of Austria (i.e. partial cover).

Can reinsurance be obtained from an ECA with which OeKB has no framework agreement?

Yes. Alternatively, a customized agreement (individual reinsurance agreement) can be concluded if required for a specific project. In this case, please plan on a longer processing time.

Is it also possible to take out insurance with a private underwriter?

Yes. We are happy to look into this possibility if the need arises.

Can I assume that the procedure is always the same no matter which ECA is the reinsurer?

Yes. Reinsurance agreements are already largely standardised.

When seeking reinsurance, should I expect a longer processing time than otherwise?

As the ECAs involved do not act in parallel (the exporter first informs the main insurer, who then informs the reinsurer), the communication chain is longer than when ECAs and exporters are in direct contact. The length of the processing time also depends on whether a framework agreement already exists or not. All things considered, the advantages for the exporter, buyer and bank of the reduced administrative effort resulting from working with just one ECA definitely outweigh the disadvantage of the longer processing time.

What does OeKB require from the bank that provides the buyer credit? Does the identity of the bank have to be known at the time of application?

Domestic and foreign banks with an acceptable rating, preferably located in the European Union or Switzerland, are eligible as lenders and guarantee holders. While it is not a prerequisite that the identity of the bank be known at the time of applying, it is clearly an advantage.

Our strength: International networking

OeKB is one of the most well-connected export credit agencies (ECA) in the world. We have signed cooperation agreements with more than 20 institutions - and the number is growing every year. That makes access to financing easier for you.


Country/ECA/IFI Cooperation Parallel Insurance Reinsurance
EBRD  x    
IBRD  x    
ICIEC  x    
Africa/ ADB/ ADF  x    
Africa/ ATIDI  x    
Arabic Region/ DHAMAN  x    
Asia/ ADB  x    
Belgium/ CREDENDO      x
Canada/ EDC  x    
China/ SINOSURE  x    
Croatia/ HBOR  x    
Czech Republic/ EGAP  x    x
Denmark/ EKF      x
Finland/ FINNVERA      x
Germany/ EULER HERMES      x
Greek/ E.C.I.O.  x    
Hungary/ EXIM  x   x
Israel/ ASHRA    x  
Italy/ SACE      x
Japan/ NEXI  x    x
Luxemburg/ ODL      x
Netherlands/ ATRADIUS    x  x
Norway/ GIEK      x
Poland/ KUKE  x    x
Slovakia/ EXIMBANKA SR      x
Slovenia/ SID  x    x
Spain/ CESCE      x
Sweden/ EKN   x  x
Switzerland/ SERV      x
Turkey/ TÜRK EXIMBANK  x    x
United Kingdom/ UK EXPORT FINACE      x

Cooperations with Banks

  • Kazakhstan / Damu Fund
  • Kazakhstan / DBK
  • Kyrgyzstan / Russian-Kyrgyz Development Fund

Your benefits

OeKB is one of the most well-connected credit insurers.

With an export guarantee and a reinsurance, your entire multi-sourcing project is covered.

How to cover your multi-sourcing projects

Get us involved as soon as you start planning a multi-sourcing project with participants from different countries. The specialists in our Export Services department will advise you in depth on the best way to structure your project and how best to cover commercial and political risks.

Financing for your foreign project partner

The G3 guarantee enables your foreign project partner to access credit on attractive terms.

While a G1 guarantee covers your multi-sourcing project, a G3 guarantee provides your foreign project partner with access to attractive financing. The application is made by the bank financing the project.
Learn more

Any more questions?

If you would like to receive more detailed information or have an individual consultation, please do not hesitate to contact us.
Client Advisory Export Services
T +43 1 53127-2600