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.
EU and high income OECD countries also included
As a consequence of the corona crisis EKF can now (temporarily) reinsure export transactions in all EU countries (including Denmark) as well as Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland and the United States.
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 does Reinsurance cost?
Der findes to former for dækning. Præmien kan variere, alt efter hvilken type dækning du vælger.
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.
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.