What Is Public Export Credit Insurance?
Public export credit insurance protects exporters against bad debt
losses as a result of political and economic risks associated with
In Germany, Euler Hermes Kreditversicherungs-AG and
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungs-
gesellschaft (PwC AG) have been appointed to manage and handle
public export credit guarantees. They have been mandated to act on
behalf and for account of the Federal Republic of Germany. Since
Euler Hermes Kreditversicherungs-AG is the leading partner in this
consortium, the public export credit insurance policies are often
also referred to as "Hermes Cover".
The main goal of export credit guarantees is to promote
foreign trade. Decisions regarding the coverage policy and the
underwriting of export credit guarantees are made by the Federal
Government's Interministerial Committee.
Since export transactions with long term financing typically
require credit insurance coverage, especially when transacting with
emerging markets, all Western industrial nations, as well as some
developing countries, have public export credit guarantees in place
in order to support their country's exporters.