14 per cent of global cross-border trade supported by Berne Union’s export credit and investment insurers
Use of insurances against political risks and export credit risks is a growing trend which is good news for all the parties of global cross-border trade. Members of an international association of export credit and investment insurers, the Berne Union, now cover over 14 per cent of the world trade and their share rose in 2017. As an export credit agency Finnvera too is a member of the Berne Union. The Union’s Spring Meeting was held in Kilifi, Kenya in March 2018.
Africa is a growing market to the Berne Union members. In 2017 the members collectively covered trade to African countries for an amount of USD 80 billion. In addition, last year Berne Union members also supported USD 9 billion of foreign direct investment into Africa in areas such as infrastructure, power generation including renewable energy, and mining.
Globally the new business underwritten by members of the Berne Union in 2017 totalled USD 2,350 billion. This was 3 per cent more than in the previous year.
Members paid over USD 6 billion in claims through the course of 2017. This is well above the 10-year average of USD 4.5 billion, but still 2.4 per cent lower than the recent peak in 2016.
Berne Union President, Finnvera’s Deputy CEO, Topi Vesteri, commented that “by all accounts 2017 was an excellent year for Berne Union members and once again we made a tremendous positive impact on global cross-border trade and investment. Business is growing, which is positive news both for insurers and the real economy in which trade is insured. While indemnifications are also high, this is good news for the insured, who are thus able to maintain their business, despite the inherent trade risks. For we insurers, measures of long-term sustainability are positive and we are well-placed and well-resourced to adapt and to continually improve our support to trade and investment globally”.
The Berne Union is the international association of export credit and investment insurers. The 85 members include government-backed export credit agencies, private credit and political risk insurers and multilateral agencies from from 73 countries – representing all aspects of the industry worldwide. Finnvera’s Topi Vesteri has headed the association since autumn 2015.
Topi Vesteri, Deputy CEO, Finnvera, tel. +358 29 460 2679
For more information and a list of members, please visit www.berneunion.org