Export credit insurance

Export credit insurance is a financial instrument that covers the exporter against the risk of non-payment by their foreign buyer. It protects against two types of risk:

Commercial risk: insolvency or payment default by the buyer
Political risk: war, revolution, embargo, transfer restrictions, government moratorium

In France, public export credit insurance is managed by Bpifrance Assurance Export. Private insurers (Euler Hermes, Atradius, Coface private market) also offer policies.

The main guarantees available are:

Manufacturing risk cover: covers costs incurred if the contract is cancelled during manufacture
Credit risk cover: covers non-payment after delivery
Prospection insurance: covers commercial prospection costs abroad
Exchange rate guarantee: covers currency fluctuation risk

The guaranteed percentage is typically 90 % to 95 % for political risk and 80 % to 90 % for commercial risk, with the exporter retaining a share to maintain commercial vigilance.

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