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Premia / Uninsured Percentages

What costs do exporters incur when an export guarantee is granted?

The premium charged for granting Federal Export Credit Guarantees comprises administrative fees and the premium for insurance cover.

Administrative fees depend on the order value. When an application is made, an application fee is charged. For each prolongation of the offer of cover beyond one year, a prolongation fee must be paid. There is in addition an issuing fee on issuance of the cover policy. No insurance tax is payable.

The premium rate depends primarily on the country risk category into which the country of the buyer/guarantor is categorized. Category 0 means a very low risk and thus the lowest premium rate, while Category 7 signifies the highest risk and the highest premium.

The premium is further influenced by the order value, the repayment term, the buyer's status - public or private, with or without a bank guarantee - and, depending on the case, also by the level of the uninsured percentage (percentage of cover). In case of a private buyer/guarantor (e.g. bank) its credit standing also influences the premium amount (buyer/bank category).

With effect from 1 September 2011 a new premium system for single transaction cover, framework credit cover and revolving credit cover will be introduced, which will result in a further harmonization of premiums charged by the state export credit agencies within the OECD. The calculation of the premiums charged for wholeturnover cover, manufacturing risk cover, securitisation guarantees and supplementary forms of cover will remain unchanged. More detailed information can be found on a specific page explaining the new premium system. Below you will find some examples showing the premium calculation pursuant to the old and the new system.

The premium for export credit cover (tabular overview)

Case 1 a:
Order value: EUR 1 Million
Covered amount: EUR 850,000
Credit period: six months
Shipment to a country with medium risk level Country risk Category 4
  to 31.08.2011 since 01.09.2011
Public buyer sovereign risk SOV
Costs of cover: EUR 9,180 + fees* EUR 8,755 + fees*
  (1.08 % of receivables) (1.03 % of receivables)
Case 1 b:
Order value: EUR 1 Million
Covered amount: EUR 850,000
Credit period: six months
Shipment to a country with medium risk level Country risk Category 4
  to 31.08.2011 since 01.09.2011
Private buyer without a bank guarantee Buyer category 3 (average creditworthiness) CC3
Costs of cover: EUR 11,305 + fees* EUR 11,200 + fees*
  (1.33% of receivables) (1.32% of receivables)
Case 2 a:
Order value: EUR 1 Million
Covered amount: EUR 850,000
Credit period: five years
Shipment to a country with medium risk level Country risk Category 4
  to 31.08.2011 since 01.09.2011
Public buyer sovereign risk SOV
Costs of cover: EUR 28,645 + fees* EUR 25,925 + fees*
  (3.37% of receivables) (3.05% of receivables)
Case 2 b:
Order value: EUR 1 Million
Covered amount: EUR 850,000
Credit period: five years
Shipment to a country with medium risk level Country risk Category 4
  to 31.08.2011 since 01.09.2011
Private buyer without a bank guarantee Buyer category 3 (average creditworthiness) CC3
Costs of cover: EUR 37,145 + fees* EUR 40,545 + fees*
  (4.37% of receivables) (4.77% of receivables)

* For transactions of this size, an additional application fee of EUR 1,000 and an issuing fee of EUR 250 on issuance of cover will be charged.

Uninsured percentage

Every type of cover includes a percentage of any loss occurring which the insured must bear for his own account:

  • In the case of export credit guarantees for private and public buyers (specific guarantees and revolving cover) it is 5 % for political risks and 15 % for commercial risks and protracted default.
  • In the case of Wholeturnover Policies (APG) it is 5 % for political risk and 10 % for commercial risk.
  • In the case of Wholeturnover Policies light (APG-light) it is 10 % for all types of risk.
  • In the case of finance credit cover for private and public buyers, it is 5 % for all types of risk.
  • In the case of manufactoring risk cover for private and public buyers, it is similarly 5 % for all types of risk.

For a limited period up to the end of 2013 the uninsured portion of commercial risks under supplier credit cover, revolving supplier credit cover and Wholeturnover Policies can be reduced upon application to 5 % against the payment of a premium surcharge.

The policy holder is not permitted to insure the uninsured percentage elsewhere or to otherwise secure it.

Fees and Premium Rates (548 KB)

Calculation of premiums ( 270 KB)

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