A recent report by the Berne Union shows that demand for export credit insurance is increasing. At the same time, the current geopolitical risk and economic environment is leading to heightened caution in the industry. The export credit insurers expect an increase in claims. Public credit insurers will nevertheless maintain their risk appetite.
Business Confidence Index Q3/2022 published
The Berne Union (BU) recently published the Business Confidence Index for Q3. The BU’s Business Confidence Index was launched in 2021, with the objective to provide a continuous indicator of the overall perception of demand, risk appetite and claims in the export credit insurance industry. The Index is based on quarterly snapshots of BU Members’ assessment of their current and imminent business situation with respect to these factors.
Important results at a glance
- The global risk environment remains tense and companies face numerous challenges: disrupted supply chains, labor shortages, inflated commodity and energy costs, rising interest rates.
- The increased risk perception and uncertainty among companies is leading to strong demand for export credit insurance, especially for short-term covers (payment terms of less than 360 days).
- The likelihood of payment delays and defaults is increasing and private credit insurers will be less willing to take risks.
- Public export credit insurers such as OeKB provide reason for some optimism: they state that they want to maintain their willingness to take risks or even expect an increase in risk appetite. According to the report, this is a "good demonstration of the market gap-filling mandate of public insurers of export credit and investment".
About Berne Union
The Berne Union (BU) is the international association of private and public export credit and investment insurers. The 83 members together insure around 14% of global cross-border trade. OeKB has been a member of the BU since 1954. In the BU, OeKB represents the interests of the Austrian export industry by, among other things, observing the development of the competition, discussing ideas for innovations in products and processes, coordinating the approach to joint projects with other export credit agencies and concluding cooperation agreements.