How (re)insurance can support the objectives of export credit agencies
Our perspective
Economic growth facilitation
Export credit agencies (ECAs) and export-import banks (EXIMs) play a critical role in supporting and enabling their country’s foreign trade and foreign direct investment. In fact, together with private market actors, ECAs and EXIMs provided approximately USD 2.5 trillion of payment risk protection to banks, exporters and investors in 2023. This is equivalent to 13% of world cross-border trade for goods and services.
How we can help
Risk transfer
By ceding risks to a reinsurer ECAs can reduce their risk and expand their underwriting capacity without compromising their financial stability.
Strategic partnership
Building a relationship with a reinsurer gives ECAs access to specialised expertise and global market insights enabling further refining of ECA risk management strategies.
Knowledge transfer
Collaborating with reinsurers on advanced risk and climate analytics to develop joint, innovative risk management tools for ECAs.
Reinsuring Export Credit Agencies
The role of reinsurance in a changing global landscape
ECAs have recently seen their mandates evolve due to geopolitical shifts and the realignment of global economic governance. This evolution also aims to better align with domestic and international efforts in climate change and digital transformation. Reinsurance plays a crucial role in supporting this increased focus on sustainable growth by reducing uncertainty and providing additional risk capital. Moreover, with their extensive risk management expertise, reinsurers can assist ECAs in analysing their exposures and developing new methods to address the rapidly changing demands of the regulatory and strategic landscape.
USD 2.5 trillion
Description
Equivalent share of world cross-border trade for goods and services. USD 2.5 trillion of payment risk protection to banks, exporters and investors in 2023.
13%
Description
Equivalent share of world cross-border trade for goods and services.
Reinsuring export credit agencies: What drives demand?
What are the drivers of private reinsurance demand from ECAs? Guided by this research question, a recently published working paper analyses relevant elements of public institutions’ de-risking appetite and other functions through the use of private reinsurance.
Thought Leaders in Action
Reinsuring ECAs and EXIMs
Join us as we bring together the authors of a working paper that examines the factors influencing the demand for reinsurance by ECAs and EXIMs. Simone Krummaker, Andreas Klasen, Margherita Mariani and Fedra De Angelis Effrem discuss how reinsurance can enhance the ability of ECAs and EXIMs to manage risk and support international trade.
ECAs are faced with complex strategic challenges and the underwriting, claims and technical expertise of reinsurers can help them navigate these waters.
Contact us
Interested in finding out more? Get in touch to learn how we can work together.
