החב' לביטוח סיכוני סחר חוץ (IFTRIC) חתמה על הסכם לביטוח משנה עם מקבילתה הגרמנית - Euler HERMES
.Reinsurance contract signed between IFTRIC (Israel) and Hermes (Germany) last year
In October 2003 The Israel Foreign Trade Risks Insurance Corporation (IFTRIC) – a state owned company with more than 45-years experience, established to support Israel export and foreign investment activities and to provide Israel manufacturers with insurance cover and financial tools for export credit risks management - have signed the Reciprocal Reinsurance Contract with Euler Hermes Kreditversicherungs (Hermes) – a leading German credit insurance corporation and a state-mandated national export credit insurer.
The agreement between the two ECAs is designated to provide cover to multi-sourcing projects in high risky developing countries, in which exporters from both countries participate. The reinsurance model will make it easier for the exporters and the credit insurers to finance and secure joint export transactions in one financing package, while allowing just one primary export credit insurer (usually the insurer of the country from where the largest share of the project is supplied) to assume the credit risks of the entire project and to draw up a reinsurance contract with the re-insurer from the other side for the portion of goods delivered by the foreign subcontractor.
The agreement will enable the Israel exporters to source from more than one country; thereby offering a mix of goods and services that best meets the buyer’s needs, and still get cover even for such projects in which a foreign content may exceed the limits accepted by IFTRIC. Other obstacles, such as country or project limits which the national insurer might apply, can also be overcome by the re-insurance.
Among other advantages provided by the contract is possible harmonization (or matching) of terms and conditions among the cooperating ECAs that will allow the Israel companies that operate in German and the Israel exporters that are working together with German producers on projects in third countries, to enjoy improved insurance terms and approach to cheaper financing resources – the factors that are vital in the conditions of increasing global competition, when the exporters are required to offer better credit terms to their buyers in the high risky countries in order to win business.
The contract has become another pact among several similar agreements signed by IFTRIC during the last few years with the ECAs in the world and is representing another important step made by the company on her way of improving the terms offered to Israel exporters in order to put them in the equal position with their competitors abroad.
The agreement between IFTRIC and Hermes is expected to benefit exporters from both countries and will hopefully strengthen trade cooperation between Israel and German economies by turning export opportunities into real transactions.