$14.6 BILLION
IN EXPORT CREDIT AND INVESTMENT INSURANCE
COMMITMENTS SINCE 1415H (1995) TILL 1433H (2012)
Segment
Instrument / Product
Maximum
Term
Purpose
Risks
Covered
Exporters
Comprehensive Short Term Policy (CSTP)
2 years
To protect Exporters and Banks against the risk of non-payment of an export receivable.
Non payment due
to Commercial and
Country Risks
Globalliance Policy
1 year
Contract Frustration Policy
7 years
Specific Transaction Policy (STP)
7 years
Banks
Bank Master Policy (BMP)
7 years
Documentary Credit Insurance Policy (DCIP)
2 years
To protect the confirming bank of a Letter of Credit against the risk of non-payment by the issuing bank.
Investors
Financiers
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»
Equity Investment Policy
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»
Financing Facility Policy
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»
Loan Guarantee Policy
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Non Honoring of Sovereign Obligations
Up to
15 years
To protect investors and financiers against country risks.
Country
Risks
Types of
Reinsurance
Reinsurance
Arrangement
Purpose
Inward
Reinsurance
Fronting
Arises when an ECA has issues concerning issuance of a policy due to legislation, risk and
capability reasons. ICIEC as a multilateral institution can assist to overcome such restric-
tion.
Quota Share Treaty
Agreement between ECA and ICIEC whereby ICIEC agrees to be the reinsurer to the ECA
concerned. It contains provisions defining the terms of the agreement including specific
risk definition, data on limits, retention, provisions for premium payment, duration etc.
Reinsurance Facility
Agreement (RFA)
Offered to ECAs in Member countries to reinsure, on facultative basis, the commercial and/or
political risks underwritten by the ECAs.
Excess of Loss Reinsur-
ance Treaty
Subject to a specified limit, indemnifies the ceding company (ECA) for the amount of loss
in excess of a specified retention.
Outward
Reinsurance
Quota Share Treaty
Agreement between ICIEC and ‘A’ rated Reinsurers in the market who agree to be ICIEC's
reinsurers for a specified period and on agreed terms and conditions. Currently our Treaty
reinsurers are Atradius Re and Catlin, in London.
Facultative Reinsurance
It provides ICIEC with coverage for specific individual risk that is unusual and so large that is not
covered in ICIEC Quota Share ReinsuranceTreaty.
Key Indicators since inception up to the end of 1433H (2011-2012)
Business Insured
USD 14.67 billion
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Export Credit
USD 12.70 billion
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Investment
USD 1.97 billion
Claims Paid
USD 24.44 million
