PROTECTING EXPORTERSThe role of Berne Union members in international trade

Ankara | 26 March 2015 COMCEC Trade Working Group

Credit and investment insurance

Berne Union members provide risk mitigation products to exporters and

investors, facilitating international trade and foreign direct investment throughout

the world.

COMCEC Trade Working GroupAnkara | 26 March 2015

Berne Union

Credit & Investment Insurers – private and public

1934Founded in Berne, Switzerland.

Today 76 members (including the Berne Union Prague Club) over 60 countries USD 1.9 trillion export and investment insured 10% of world exports insured

COMCEC Trade Working GroupAnkara | 26 March 2015

Berne Union members

Ankara | 26 March 2015 COMCEC Trade Working Group

Prague Club members

COMCEC Trade Working GroupAnkara | 26 March 2015

Areas of business

Short Term Export Credit Insurance (ST)

– credit terms of 1 year or less

Medium / Long Term Export Credit Insurance (MLT)

– credit terms over 1 year up to 15 years

Investment Insurance (INV)

– coverage of political risks, up to 20 years

COMCEC Trade Working GroupAnkara | 26 March 2015

Insured exports and Investments

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est)

500

1,000

1,500

2,000

980

1,142

1,322

1,509

1,363

1,498

1,7621,820

1,902 1,927

Total

INV

MLT

USD Billion

Ankara | 26 March 2015 COMCEC Trade Working Group

Claims paid globally

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est)

1

2

3

4

5

6

2.92.8

2.3 2.3

5.4

3.7

4.0

4.6 4.54.6

INV

MLT

ST

USD Billion

Ankara | 26 March 2015 COMCEC Trade Working Group

Insured exports and Investments – World exports

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est)

500

1,000

1,500

2,000

5,000

10,000

15,000

20,000Insured Export & Investment

World ex-ports (right axis)

USD Billion

Ankara | 26 March 2015 COMCEC Trade Working Group

Source World Exports: WTO

ECAs and Private insurers

Ankara | 26 March 2015

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est)

500

1,000

1,500

2,000

980

1,142

1,322

1,509

1,363

1,498

1,7621,820

1,902 1,927

ECAs

private in-surers

USD Billion

COMCEC Trade Working Group

Short Term business and world events

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Est

500

1,000

1,500

Ankara | 26 March 2015 COMCEC Trade Working Group

1997 / 1998:

Asian Crisis / Russian Crisis

2008 / 2009:

Global Financial

Crisis

[USD, Billions]

1989:

Fall of the Berlin

Wall

1994:

Tequila Crisis

2001:

9/11 Attacks

2011:

Arab Spring

2013:

Ukraine war / Russia sanctions

Short Term Credit limits by destination region

. 2005 Q4

2006 Q4

2007 Q4

2008 Q4

2009 Q4

2010 Q4

2011 Q4

2012 Q4

2013Q4

2014Q4

200

400

600

EUROPE ASIA AMERICAS AFRICA OCEANIA

US

D B

illio

n

COMCEC Trade Working GroupAnkara | 26 March 2015

Short Term Credit limits by destination country

2005 Q4

2006 Q4

2007 Q4

2008 Q4

2009 Q4

2010 Q4

2011 Q4

2012 Q4

2013 Q4

2014 Q4

5

10

15

20

TURKEY UNITED ARAB EMIRATES SAUDI ARABIA INDONESIA EGYPT IRAN

US

D B

illio

n

Ankara | 26 March 2015 COMCEC Trade Working Group

Short Term Claims paid by region

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

500

1,000

1,500

EUROPE ASIA AMERICAS AFRICA OCEANIA

US

D M

illio

n

Ankara | 26 March 2015 COMCEC Trade Working Group

Short Term Claims paid by country

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

50

100

150

200

TURKEY UNITED ARAB EMIRATES SAUDI ARABIA INDONESIA EGYPT IRAN

US

D M

illio

n

Ankara | 26 March 2015 COMCEC Trade Working Group

Berne Union Objectives and Activities

1. Enable professional exchange and information sharing• Meetings,

• Dedicated intranet,

• Webinars,

• Working groups

• Specialist meetings

2. Create networking opportunities

3. Promote the industry

Ankara | 26 March 2015 COMCEC Trade Working Group

Prague Club Objectives and Activities

•Support emerging public and private credit insurers

•Develop training and education programs

•Underwriting and Risk Management best practice

Ankara | 26 March 2015 COMCEC Trade Working Group

Berne Union

The stable force in world trade

COMCEC Trade Working GroupAnkara | 26 March 2015

Thank you

COMCEC Trade Working Group

fmorel@berneunion.org+44 20 7841 1114

Ankara | 26 March 2015