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Reinsurance

Use Reinsurance to protect your exports against loss.
Reinsurance helps you maintain continuous exports with short-term credit periods in cases where private credit insurance companies decline to provide cover for the entire risk.


  • Advantages of Reinsurance

    Retain export orders
    Reinsurance allows you to retain export orders which would otherwise be halted because your credit insurance company declines to accept the risk of insuring the orders.
     
    Additional risk capacity to commercial credit insurance companies
    The reinsurance agreement enables credit insurance companies to reinsure risks with EKF, significantly reducing their risk. That way, they are able to provide cover to buyers that they would previously have had to turn down.
    No delays
    Registering for the reinsurance scheme is simple, and your company can register before the need for reinsurance arises.

    This speeds up the application processing time and helps you avoid unnecessary delays.
  • What is Reinsurance?

    Due to the financial crisis, many buyers abroad are less creditworthy than they once were.
     
    This has caused private credit insurance companies to withdraw from the provision of export insurance in a number of countries and markets where they assess the risk of loss to be too high. EKF’s reinsurance scheme is designed to help out Danish export companies affected by this situation.
     
    EKF offers to reinsure export credits provided by private credit insurance companies to Danish companies. The purpose of the agreement is to make private credit insurance companies less risk-averse.
    ​Under the agreement, risk is shared between you, your private credit insurance company and EKF. But in most cases, EKF assumes the majority of the risk.
    There are two types of Reinsurance: Quota Share cover, where EKF covers most of the risk on the buyer, and Top Up cover, where EKF can double the limit granted by the credit insurance company.
     
    That way, you can protect your exports from loss, while at the same time focusing on succeeding in the export markets.
  • How does Reinsurance work?

  • What does Reinsurance cost?

    Quota Share cover
    The premium is determined by country risk category and amounts to 0.9% of turnover for the lowest-risk countries and 1.4% for the highest-risk countries. The deductible is 15%.
    Top Up cover
    The premium rate for the Top Up cover is 0.50% for all country risk categories – the minimum rate being the premium rate applying to the regular policy. The premium is calculated based on the proportionate share of turnover.
     
    The deductible is the same as that under the standard policy with the credit insurance company.
  • Terms & conditions regarding Reinsurance

    Who is eligible for Reinsurance?
    Your company needs to be a customer with a private credit insurance company to register, through this company, for the scheme for reinsurance of export transactions.
     
    To be eligible for a reinsurance agreement with EKF, your application for coverage must have been rejected, or you must have obtained partial coverage only, and your customer must be domiciled in a country covered by the agreement.
     
    Under EU regulations, reinsurance in countries within the OECD is banned. EKF covers only the lowest-risk buyers who would otherwise have been turned down. EKF does not cover high-risk buyers.
     
    What is the maximum reinsurance amount?
    The upper limit for a buyer is DKK 50 million, but there is no limit on the total number of reinsurance policies or on an exporter’s total reinsurance amount.
     
    Who decides what types of transaction are insurable?
    The private credit insurance companies decide, at their discretion, which transactions to insure and which to turn down. EKF is not involved in this decision.
    What criteria are applied in assessing the insurability of a transaction?
    The reinsurance agreement is designed to ensure that credit insurance companies are willing to accept risks on sound export transactions but equally that they turn down high-risk export transactions.
     
    Because of this, the reinsurance agreement sets out a number of criteria for EKF cover. For example, no default on payments by the buyer must have been registered within the last six months, and there must be no impending risk of loss.
     
    However, the credit insurance company may, at its discretion, take into account a good track record from previous trade with the buyer.
     
    What is the term of Reinsurance?
    Reinsurance applies solely to export deliveries with credit terms of up to 180 days.
     
    What does EKF cover?
    EKF covers any loss less the company’s and the credit insurance company’s deductibles.

Advantages of Reinsurance

Retain export orders
Reinsurance allows you to retain export orders which would otherwise be halted because your credit insurance company declines to accept the risk of insuring the orders.
 
Additional risk capacity to commercial credit insurance companies
The reinsurance agreement enables credit insurance companies to reinsure risks with EKF, significantly reducing their risk. That way, they are able to provide cover to buyers that they would previously have had to turn down.
No delays
Registering for the reinsurance scheme is simple, and your company can register before the need for reinsurance arises.

This speeds up the application processing time and helps you avoid unnecessary delays.

What is Reinsurance?

Due to the financial crisis, many buyers abroad are less creditworthy than they once were.
 
This has caused private credit insurance companies to withdraw from the provision of export insurance in a number of countries and markets where they assess the risk of loss to be too high. EKF’s reinsurance scheme is designed to help out Danish export companies affected by this situation.
 
EKF offers to reinsure export credits provided by private credit insurance companies to Danish companies. The purpose of the agreement is to make private credit insurance companies less risk-averse.
​Under the agreement, risk is shared between you, your private credit insurance company and EKF. But in most cases, EKF assumes the majority of the risk.
There are two types of Reinsurance: Quota Share cover, where EKF covers most of the risk on the buyer, and Top Up cover, where EKF can double the limit granted by the credit insurance company.
 
That way, you can protect your exports from loss, while at the same time focusing on succeeding in the export markets.

How does Reinsurance work?

What does Reinsurance cost?

Quota Share cover
The premium is determined by country risk category and amounts to 0.9% of turnover for the lowest-risk countries and 1.4% for the highest-risk countries. The deductible is 15%.
Top Up cover
The premium rate for the Top Up cover is 0.50% for all country risk categories – the minimum rate being the premium rate applying to the regular policy. The premium is calculated based on the proportionate share of turnover.
 
The deductible is the same as that under the standard policy with the credit insurance company.

Terms & conditions regarding Reinsurance

Who is eligible for Reinsurance?
Your company needs to be a customer with a private credit insurance company to register, through this company, for the scheme for reinsurance of export transactions.
 
To be eligible for a reinsurance agreement with EKF, your application for coverage must have been rejected, or you must have obtained partial coverage only, and your customer must be domiciled in a country covered by the agreement.
 
Under EU regulations, reinsurance in countries within the OECD is banned. EKF covers only the lowest-risk buyers who would otherwise have been turned down. EKF does not cover high-risk buyers.
 
What is the maximum reinsurance amount?
The upper limit for a buyer is DKK 50 million, but there is no limit on the total number of reinsurance policies or on an exporter’s total reinsurance amount.
 
Who decides what types of transaction are insurable?
The private credit insurance companies decide, at their discretion, which transactions to insure and which to turn down. EKF is not involved in this decision.
What criteria are applied in assessing the insurability of a transaction?
The reinsurance agreement is designed to ensure that credit insurance companies are willing to accept risks on sound export transactions but equally that they turn down high-risk export transactions.
 
Because of this, the reinsurance agreement sets out a number of criteria for EKF cover. For example, no default on payments by the buyer must have been registered within the last six months, and there must be no impending risk of loss.
 
However, the credit insurance company may, at its discretion, take into account a good track record from previous trade with the buyer.
 
What is the term of Reinsurance?
Reinsurance applies solely to export deliveries with credit terms of up to 180 days.
 
What does EKF cover?
EKF covers any loss less the company’s and the credit insurance company’s deductibles.
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