Exchange Risk Insurance

Exchange Risk Insurance

Exchange risk insurance allows the exporter to reduce the risk of unfavorable changes in the exchange rate of a foreign currency.

Key benefits

• reduction of the effects of unfavorable changes in the exchange rate of EUR in PLN on the profitability of export contracts fulfilled by the exporter
• insurance coverage of both receivables for which the exporter already received payments as well as outstanding receivables for which the exporter received indemnity
• no obligations placed upon the exporter as to the value and amount of invoices submitted for insurance coverage, therefore it is possible to submit even a single invoice
• the cost of insurance is limited to a premium calculated based on the receivables submitted for insurance coverage
• any extra profits resulting from a rise in the exchange rate of EUR in PLN constitute wholly the exporter’s profit
• availability of the insurance to all exporters, without obligation to submit any additional collateral
• procedures which provide for a prompt conclusion of the insurance agreement as well as efficient service
• a number of benefits resulting from the possibility of offering competitive payment terms in export transactions

Subject of the insurance
We cover losses incurred by an exporter performing export transactions in EUR on credit terms of up to 60 days, resulting from the drop in the exchange rate of EUR in PLN by more than 2% and less than 15%.

Costs
Premium is calculated based on invoices submitted by the insured, according to a premium rate which is set depending on the duration of a credit extended by the exporter:
·    up to 14 days – 0,30%
·    from 15 to 30 days – 0,50%
·    from 31 to 60 days – 1,10%