PROTECTING EXPORTERS The role of Berne Union members

PROTECTING EXPORTERS The 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. Ankara | 26 March 2015 COMCEC Trade Working Group

Berne Union Credit & Investment Insurers – private and public 1934 Founded 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 Ankara | 26 March 2015 COMCEC Trade Working Group

Berne Union members Ankara | 26 March 2015 COMCEC Trade Working Group

Prague Club members Ankara | 26 March 2015 COMCEC Trade Working Group

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 Ankara | 26 March 2015 COMCEC Trade Working Group

Insured exports and Investments USD Billion 2 000 1 902 1 762 1 820 1 927 INV MLT 1 509 1 500 1 498 ST 1 363 1 322 1 142 1 000 980 500 2005 Ankara | 26 March 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est) COMCEC Trade Working Group

Claims paid globally USD Billion 6 5, 4 Total 5 4, 6 4, 5 INV MLT 4, 0 4 4, 6 3, 7 2, 9 3 2, 8 2, 3 2007 2008 2 1 2005 Ankara | 26 March 2015 2006 2009 2010 2011 2012 2013 2014 (est) COMCEC Trade Working Group

Insured exports and Investments – World exports USD Billion 2 000 20 000 World exports (right axis) Insured Export 000 &15 Investment 1 500 1 000 10 000 5 000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est) Source World Exports: WTO Ankara | 26 March 2015 COMCEC Trade Working Group

ECAs and Private insurers USD Billion 2 000 1 902 1 762 1 820 1 927 Total ECAs 1 509 1 500 1 498 1 363 1 322 1 142 1 000 980 500 2005 Ankara | 26 March 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est) COMCEC Trade Working Group

2013: Short Term business and world events Ukraine war / Russia sanctions [USD, Billions] 2011: Arab Spring 2008 / 2009: Global Financial Crisis 1 500 1 000 2001: 1997 / 1998: 500 1989: 1994: Fall of the Berlin Wall Tequila Crisis 1989 Ankara | 26 March 2015 1994 9/11 Attacks Asian Crisis / Russian Crisis 1999 2004 2009 2014 Est COMCEC Trade Working Group

Short Term Credit limits by destination region USD Billion 600 400 200 . 2005 Q 4 2006 Q 4 EUROPE Ankara | 26 March 2015 2007 Q 4 2008 Q 4 ASIA 2009 Q 4 AMERICAS 2010 Q 4 AFRICA 2011 Q 4 2012 Q 4 2013 Q 4 2014 Q 4 OCEANIA COMCEC Trade Working Group

Short Term Credit limits by destination country 20 USD Billion 15 10 5 2005 Q 4 TURKEY Ankara | 26 March 2015 2006 Q 4 2007 Q 4 2008 Q 4 UNITED ARAB EMIRATES 2009 Q 4 2010 Q 4 SAUDI ARABIA 2011 Q 4 INDONESIA 2012 Q 4 2013 Q 4 EGYPT 2014 Q 4 IRAN COMCEC Trade Working Group

Short Term Claims paid by region 1 500 USD Million 1 000 500 2005 2006 EUROPE Ankara | 26 March 2015 2007 2008 ASIA 2009 2010 AMERICAS 2011 AFRICA 2012 2013 2014 OCEANIA COMCEC Trade Working Group

Short Term Claims paid by country 200 USD Million 150 100 50 2005 2006 TURKEY Ankara | 26 March 2015 2007 2008 UNITED ARAB EMIRATES 2009 2010 SAUDI ARABIA 2011 INDONESIA 2012 2013 EGYPT 2014 IRAN 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 Ankara | 26 March 2015 COMCEC Trade Working Group

Thank you fmorel@berneunion. org +44 20 7841 1114 Ankara | 26 March 2015 COMCEC Trade Working Group