table of contents...dhaman, turk eximbank, asei and iciec which increased their business insured by...
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TABLE OF CONTENTS
1. INTRODUCTION………………………………………………… 3
2. METHODOLOGY………………………………………………... 3
3. FINDINGS & ANALYSIS……………………………………….. 4
3.1 Ownership………………………………………………………… 4
3.2 Capital…………………………………………………………….. 4
3.3 Client Base ……………………………………………………… 6
3.4 Number of Buyers………………………………………………… 7
3.5 New Business Insured…………………………………………… 8
3.6 Leverage………………………………………………………..…. 17
3.7 Premiums Written………………………………………………… 18
3.8 Claims & Recoveries…………………………………………...…. 21
3.9 Loss Ratios……………………………………………………..…. 25
3.10 Outward reinsurance……………………………………………… 27
4. CONCLUSIONS………………………………………………… 29
ANNEX (AMAN UNION Questionnaire)………………………………….. 31
2
GLOSSARY OF ABBREVIATIONS USED
ASEI : Asuransi Eksport Indonesia
CAGEX : Compagnie Algerienne D’Assurance Et De Garantie Des Exportations, Algeria
COTUNACE : Compagnie Tunisienne Pour L’Assurance Du Commerce Exterieur, Tunisia
DHAMAN : Arab Investment & Export Credit Guarantee Corporation
ECGA : Export Credit Guarantee Agency (S.A.O.C), Oman
ECGE : Export Credit Guarantee of Egypt
ECIE : Export Credit Insurance of Emirates
EGFI : Export Guarantee Fund of Iran
ICIEC : The Islamic Corporation for Insurance of Investment & Export Credit
JLGC : Jordan Loan Guarantee Corporation
LCI : The Lebanese Credit Insurer S.a.L
MEXIM : Malaysia Eximbank
NAIFE : National Agency for Insurance and Finance of Exports
SEP : Saudi Export Program
Shiekan : Shiekan Insurance & Reinsurance Co.
SONAC : Société Nationale d’Assurance du Crédit et du Cautionnement
Turkexim : Turk Eximbank
3
1. INTRODUCTION
1.1 AMAN UNION is an Association of Commercial and Non-Commercial
Risk Insurers and Reinsurers established in October 2009, assembling
Member Countries from the Arab Investment and Export Credit
Guarantee Corporation and the Organization of Islamic Cooperation
(OIC). It aims at promoting and developing the commercial and non-
commercial risks insurance industry and strengthening the mutual
relationships among members through a range of activities listed in
AMAN UNION Charter (available in the Website).
1.2 The purpose of this annual report is to present and analyse data on
business indicators of the members of the AMAN UNION for 2012. It
also attempts to outline the business trends of full members since the
establishment of the UNION and seeks to identify some of the main
developments experienced and key challenges being faced by those
members.
2. METHODOLOGY
2.1 AMAN UNION Secretariat General, managed by ICIEC since
November 2011, circulated a questionnaire (Annex) to the members in
order to collect information for the purposes of this report. All members
have responded. Wherever data was unavailable, estimates or past data
has been used in order to maintain consistency.
4
2.2 List of ECAs included in the study is given below.
AMAN UNION Full Membres
Country ECA
1 Algeria CAGEX
2 Egypt ECGE
3 Indonesia ASEI
4 Iran EGFI
5 Jordan JLGC
6 Kuwait DHAMAN (Multilateral)
7 Lebanon LCI
8 Malaysia Malaysia Eximbank
9 Oman ECG Oman
10 Saudi Arabia SEP
11 Saudi Arabia ICIEC (Multilateral)
12 Senegal SONAC
13 Sudan NAIFE
14 Sudan Shiekan
15 Tunisia COTUNACE
16 Turkey Turk Eximbank
17 UAE ECIE
3. FINDINGS & ANALYSIS
3.1 Ownership
Out of the 17 members, there are 2 multilaterals (i.e. ICIEC and
DHAMAN), 1 private company (i.e. LCI) , 4 companies with mixed
public/private shareholders (i.e. SONAC, COTUNACE, JLGC and NAIFE)
and the remaining 10 ECAs are Government owned.
3.2 Capital
3.2.1 Collectively, the capital base of the AMAN UNION members in
2012 was USD 7.2 billion up from USD 7.1B in 2011. This was the
result of the capital increase of USD 120m made by EGFI in 2012.
5
3.2.2 It should be noted that in 2012, the capital base of 3 ECAs (i.e. SEP,
Turkexim and MEXIM) accounts collectively for more than 87% of
the total capital of AU full members.
3.2.3 If we exclude the aforementioned ECAs, the average capital base of
the remaining ECAs comes to USD 72m. This indicates that the
majority of AMAN UNION full members still have a relatively
limited capital base. In light of the increasing demand on credit
insurance, this could impede the growth possibilities of those
ECA’s.
SEP56%Turk Eximbank
17%
MEXIM14%
EGFI4%
DHAMAN3%
ICIEC3%
Others3%
6
3.3 Client Base
3.3.1 AMAN UNION members had 4,436 policyholders in 2012, up from
3,695 declared in 2011 (20% increase). This gives an average of 261
policyholder per ECA.
3.3.2 We noted that 96% of policyholders are holding Export Credit
Insurance policies.
3.3.3 COTUNACE and Turkexim account for 69% of the total number of
AMAN UNION policyholders with 1,391 and 1,685 respectively.
3.3.4 In 2012, we noted a decrease in 4 ECAs policyholder base
(i.e. JLGC, EGFI, ECGE and SEP) whereas Turk Eximbank
witnessed the highest increase in the number of policyholders by 37%.
Turk Eximbank38%
COTUNACE31%
ECGA5%
MEXIM5%
ICIEC4%
DHAMAN3%
CAGEX3%
ASEI3%
Others8%
7
3.4 Number of Buyers:
3.4.1 Total number of AMAN UNION buyers increased from 208,780 in
2011 to 233,078 in 2012 (12% increase) . This gives an average of
13,710 buyer per ECA.
3.4.2 It should be noted that Turkexim has the largest number of buyers (i.e.
188,128) which represents 81% of the total number of buyers in 2012.
It also recorded the highest increase in the buyer’s database in 2012
with an additional 21,948 recorded buyers.
3.4.3 If we exclude Turkexim, the average number of buyers is
2,809 buyers per ECA.
3.4.4 It is noted that 96% of the buyers are covered by Export Credit
Insurance.
3.4.5 In 2012, there is an important decrease in Shiekan’s number of
buyers by 66%. It should be noted that Shiekan is basically a general
insurance company.
3.4.6 Even if we consider that many of ECAs may have the same buyers on
their records, and they are being double-counted, this is still a
significant number, and offers a good scope for information sharing
between different agencies. This is a potential area of synergy that can
be better utilized under AMAN UNION Database project.
8
3.5 New Business Insured
A- Total Business Insured
3.5.1 As shown in the chart below, the Business Insured reached
USD 19.4 billion in 2012, an increase of 11.5% from the previous
year, resultimg in an average yearly growth of 12.1 % during the last
5 years. This is a significant increase, but it must be examined in light
of the impact of the financial crisis and political turbulence in some
member countries on the demand on credit insurance products.
Evolution of Business Insured (in USD Billion)
3.5.2 Comparably, the increase of the Business Insured of the of Berne
Union members for the same period ( 2008-2012) year-on-year over
was approximately 4.7%.
0
5
10
15
20
2008 2009 2010 2011 2012
12.3 13.114.8
17.419.4
9
Evolution of New Business Insured of Berne Union Members (in USD Trillion)
It should, however, be noted that the Berne Union volumes are
extremely large as compared to volumes of our members and
involves products that only few of our members provide
(i.e. Medium Term, Investment Insurance and Bonding), therefore,
the percentage changes are not exactly comparable.
3.5.3 Berne Union Business insured for 2012 totaled USD 1.81 trillion
which represents almost 10% of the world global trade volumes. The
total volumes of AMAN UNION members in the same period was
USD 19.4 billion, or 1.1% of that covered by the Berne Union
members and representing 1.8% of total member countrie’s Non-oil
exports (excluding ICIEC and DHAMAN business figures). If we
include the 2 multilaterals, the share will increase to 2,4%.
3.5.4 The average Business Insured per AMAN UNION member in 2012
was around USD 1.1 billion compared with USD 37 billion average
Business Insured per Berne Union member for the same period.
0
0.5
1
1.5
2
2008 2009 2010 2011 2012
1.51 1.36 1.51.77 1.81
10
Evolution in the weight of each line of business in the total buisness insured (in %)
Evolution of the business insured by each line of business (in USD Billion)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
Others
F.Invest
MT
Domestic
ST (Exp)
0
2
4
6
8
10
12
14
16
ST (Exp) Domestic MT F. Invest Others
2008
2009
2010
2011
2012
11
3.5.5 According to the above chart 1 and 2, Export Credit Insurance
continued its predominance over the other lines of business helped by
an increase in Dollar amounts of its business insured, however its
weight in the total business insured has decreased in the last 5 years
from 86% in 2008 to 75% in 2012. This trend is explained by the
increase in domestic business and foreign investment shares in the
total business insured from 3% to 12% and from 5 to 7% respectively
during the same period.
3.5.6 The biggest player is still Turkexim, accounting for 36% of the total
business volumes for 2012. This solid performance has been
consistent over the previous years. ICIEC and DHAMAN are 2nd and
3rd respectively, with 16% and 9% of the total volumes.
Brekdown of business insured during 2012 (in %)
36
169
6
6
6
4
4
43
6
Turk Eximbank
ICIEC
DHAMAN
EGFI
LCI
ASEI
MEXIM
ECIE
CAGEX
COTUNACE
Others
12
3.5.7 ECIE Business Insured has grown aggressively by more than 3 times
in 2012 compared with 2011, noting that it started operations only in
2009. Other ECAs have recorded high growth in 2012 including
DHAMAN, Turk Eximbank, ASEI and ICIEC which increased their
Business Insured by 20%, 20%, 21% and 17% respectively.
3.5.8 Turkexim, ICIEC ,DHAMAN, EGFI, LCI and ASEI account for 79%
of the total Business Insured in 2012.
B- Short Term Business :
3.5.9 The first 6 ECAs in the table below are the main active ECAs in the
short term trade credit insurance business. They represent in average
more than 84% of AMAN UNION short term business insured during
the last few years.
# ECA
2010
2011
2012
1 Turkexim 5,010 5,752 6,923
2 ICIEC 1,467 2,331 2,198
3 SEP 865 717 484
4 DHAMAN 609 1,076 1,339
5 MEXIM 606 1,521 622
6 Cotunace 569 509 546
7 EGFI 371 159 151
8 ASEI 334 446 465
9 ECGA 276 220 211
10 CAGEX 222 222 164
11 ECGE 170 150 130
12 LCI 132 342 393
13 JLGC 81 155 147
14 NAIFE 79 90 134
15 Shiekan 34 12 47
16 ECIE 25 150 766
17 SONAC 18 18 18
Total 10,868 13,736 14,738
13
3.5.10 Turk Eximbank is the major ECA in the short term business. It
accounts in average around 45% of all AMAN UNION members
short term business insured during the last 5 years.
Brekdown of Short term business insured during 2012 (in %)
3.5.11 ST Business insured of ECIE, DHAMAN, Turk Eximbank, Shiekan
and NAIFE increased tremendously in 2012 which improved their
market share.
C- MT Business :
3.5.12 MT business insured reached USD 600m in 2012 compared with
USD 259m in 2011 and USD 1,067m in 2010.
47
15
9
54
20Turk Eximbank
ICIEC
DHAMAN
ECIE
MEXIM
Others
0.5 0.5
1.1
0.3
0.6
0
0.2
0.4
0.6
0.8
1
1.2
2008 2009 2010 2011 2012
Evolution of the MT business Insured (USD Billion)
14
3.5.13 The increase of MT Business insured in 2012 is mainly explained
by the new MT transactions covered by EGFI (USD 259m) and
DHAMAN (USD 189m). The decrease in MT business in 2011
from USD 1,067m in 2010 to USD 259m is explained by the drop
in MT business of EGFI (USD 638m) and DHAMAN (150m).
3.5.14 EGFI, ICIEC, DHAMAN, MEXIM are the main ECAs involved in
the MT business in the last 5 years.
D- Domestic Insurance Business :
32%
43%
8%
17%
Share of each ECA in the MT Business (in 2012)
DHAMAN EGFI ICIEC MEXIM
0.40.7
2.02.3 2.3
0
0.5
1
1.5
2
2.5
2008 2009 2010 2011 2012
Evolution of the domestic buisness (in USD Billion)
15
3.5.15 LCI, CAGEX and ASEI are the main ECAs involved in the
domestic credit insurance in the last 5 years. During 2012, they
represent 87% of total domestic insurance business insured. The
increase in the business insured in 2010 is explained by the
increase in LCI domestic business by USD 0.5m.
D- Investment Insurance Business :
33
27
27
63 4
Domestic business in 2012 (in %)
LCI
ASEI
CAGEX
ICIEC
MEXIM
Others
0.6
0.3
0.7 0.7
1.4
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2008 2009 2010 2011 2012
Foreign Investment (in USD Billion)
16
3.5.16 Only 4 ECAs in AMAN UNION full members have been actively
involved in the foreign investmnet business since the last 5 years.
3.5.17 During 2012, we witnessed an increase in the foreign investment
business insured for 3 ECAs (i.e. ICIEC, EGFI and MEXIM).
ECA 2011
2012
ICIEC 199 825
EGFI 199 282
MEXIM 14 70
DHAMAN 302 195
3.5.18 ICIEC is the most active ECA in the foreign investment business in
2012 with 60% share followed by EGFI (21%).
ICIEC60%
EGFI21%
MEXIM5%
DHAMAN14%
Share of each ECA in the F. Investment business (in 2012)
17
3.6 Leverage
3.6.1 Leverage1 can be defined as a measure of the efficiency with which an
ECA uses its capital. Limited capital can prove to be a hindrance
especially when it comes to underwriting large transactions especially
in relatively higher risk countries where reinsurance support may not
be easily available.
Evolution of the leverage of AMAN UNION Members
3.6.2 As per the above chart, the leverage increased by an average 12.2%
during the last 5 years which is the same trend for the business insured
increase given that there has been no major increase in AMAN
UNION capital during the same period.
1 Leverage is defined as the business insured expressed as a multiple of the capital of the ECA.
12.313.1
14.8
17.4
19.4
7.1 7.1 7.1 7.1 7.2
1.7 1.8 2.1 2.5 2.7
0
5
10
15
20
25
2008 2009 2010 2011 2012
Business Insured (in USDBillion)
Capital (in USD Billion)
Leverage
18
3.6.3 In 2012 there are 4 ECAs which stand out in comparison to the other
ECAs in ternms of leverage (i.e. LCI, ECIE, COTUNACE and
CAGEX). If we exclude Cotunace from our analysis, the bigger ECAs
like Turkexim and DHAMAN have relatively conservative levels of
leverage. SEP has the lowest leverage, on account of its significant
capital base
3.7 Premiums Written
3.7.1 Premiums Written have shown a substantial increase from
USD 88.5m in 2011 to USD 111.5m in 2012. This increase is mainly
due to the increase in EGFI’s premium earned from MT buisnes
(+USD 15m), ASEI premium from domestic business
(+ USD 4.3m), Turk Eximbank premium from short term activities
(+ USD 2.4m) and ICIEC premium from foreign investment
(+ USD 4.15m). This gives an average of USD 6 cents per
USD 1.00 insured (i.e. average premium rate of 58 bp in 2012).
59.572.9
127.1
88.5
111.5
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012
Evolution of Premium earned (in USD million)
19
3.7.2 Similar to the business insured, we noted the predominance of short
term premium in the overall premium written. The MT premium is
volatile but the premium coming from domestic business is increasing
over the last few years. The same is experienced by revenues
identified in the above chart under the term “others”.
3.7.3 EGFI is providing other services generating handsome amount of fees
and commissions totaling USD 6.6m in 2012 compared with
USD 7.4m in 2011. This include credit guarantee services related to
local currency and foreign exchange, cover for bank’s bonds and
counter guarantee.
3.7.4 Of the individual ECAs, EGFI is the largest with total premiums of
USD 28.2m in 2012, a 25% share of the total premium written.
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012
Evolution of the premium written by line of business
Short Term MT Domestic Invest Others
20
3.7.5 After upward trend from 2008 to 2010 fueled by the increasing
demand for the credit insurance post the financial crisis, the average
premium rate for AMAN UNION members decreased in 2011
affected mainly by the drop in the MT premium but it increased again
in 2012 owing to an increase in the investment and MT premium
respectively from USD 7m in 2011 to USD 12.6m in 2012 and from
USD 10m to USD 20.1m.
28.17
22.93
15.71
13.85
30.8
Breakdown of premium written in 2012 by ECA (in USD million)
EGFI
Turk Eximbank
ASEI
ICIEC
Others
0.49
0.57
0.86
0.510.58
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2008 2009 2010 2011 2012
Average premium of AMAN UNION members (in % )
21
3.8 Claims & Recoveries
3.8.1 Claims have increased from USD 35.3m in 2011 to USD 43.2m in
2012 (a 22% increase). Since 2009, claims have been in an upward
trend due to the high claims paid by EGFI (USD 14.5m in 2011and
USD 16.6m in 2012). Turkexim had the 2nd highest incidence of
claims (USD 7.7m), which is understandable given its high volume
of business.
Evolution of the claims paid by ECA (in USD million)
27.522.9 23.4
35.3
43.2
6.1
69.4
25.1
6.8
22.8
0
10
20
30
40
50
60
70
80
2008 2009 2010 2011 2012
Claims
Recoveries
0
2
4
6
8
10
12
14
16
18
EGFI TurkEximbank
COTUNACE CAGEX MEXIM Others
2008
2009
2010
2011
2012
(USD million)
22
3.8.2 The claims paid in ST business has the largest weight given the
predominance of ST business for AU members. No claims were paid
under the Foreign Investment business. However, we observed a
huge increase in MT claims and for the first time in the last 5 years,
a claim was paid under the other business (specifically Buyer Credit
Guarantee) : More details in points 3.8.3 and 3.8.5.
Evolution of the claims paid by line of business (in %)
2008 2009 2010 2011 2012
ST 14.7 16.9 17.6 23.8 22.9
Domestic 12.6 5.5 4.5 6.1 5.0
MT 0.2 0.5 1.3 5.4 9.5
Others 0 0 0 0 5.9
05
10152025
Evolution of claims paid (in USD million)
53
74 7567
53
1
26
15
22
46
24 19 17
12
14
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
Others
Domestic
MT
ST
23
3.8.3 The largest claims by line of business in 2012 was paid by :
* Short Term Business : (Turk Eximbank - USD 7.7m),
* Domestic Business : (CAGEX - USD 2.7m),
* MT Business : (EGFI - USD 9.5m),
* “Other Business” : (MEXIM - USD 5.9m) : The claim was related
to a buyer credit gurantee provided by MEXIM to a local bank to
cover lending to a Malaysian investor in Thailand.
3.8.4 By geographical zone, the claims paid in Asia (mainly in UAE,
Thailand, Indonesia and Syria) have experienced a large increase in
2012 followed by claims paid in Europe (mainly Greece, Italy and
Romania).
2008 2009 2010 2011 2012
Europe 5.8 10.1 13.4 5.8 8.7
Asia 9.0 4.6 3.9 16.9 27.0
Africa 4.8 4.7 2.6 8.3 5.2
S. America 0.8 2.1 2.1 0.4 0.4
Austria & NZ 6.6 1.1 0.9 0.0 0.2
N. America 0.5 0.3 0.5 0.6 1.7
24
3.8.5 Sector-wise, the chemical and petrochemical business, vehicles,
packaging, construction and furniture have witnessed the highest
claims during the year 2012.
(in USD million)
Countries Claims paid Sector
UAE 14.4 Chemical and petrochemicals
Thailand 5.9 Petrochemical (i.e. Bitumen)
Algeria 2.7 Petrochemical (i.e. Bitumen)
Syria 2.2 Petrochemicals
Cote d’Ivoire 1.7 Vehicules and autotmobiles S.Parts
Canada 1.5 Packaging
Indonesia 1.3 Furniture, rubber, paper, etc..
Lebanon 0.9 Service
3.8.6 Recoveries have increased in 2012 owing to the good amounts
recovered by COTUNACE (USD 4.5m on India) and CAGEX
(USD 13.3m for domestic sales of bitumen to a public buyer).
27.522.9
23.4
35.3
43.2
6.1
69.4
25.1
6.8
22.8
0
10
20
30
40
50
60
70
80
2008 2009 2010 2011 2012
Claims
Recoveries
(USD million)
25
3.8.7 The decrease in recoveries from 2009 to 2010 resulted from the
handsome amount of recovery made by DHAMAN in 2009
( USD 55.1m) whereas the drop in recoveries from 2010 to 2011 is
mainly explained by COTUUNACE recovery of USD 21.7m in
2010.
3.8.8 COTUNACE and CAGEX recovered 79% of total amount of claims
recovered by AMAN UNION members in 2012 (i.e. USD 4.5m and
USD 13.6m respectively).
3.9 Loss Ratios
3.9.1 Given the high claims paid by EGFI and Turkexim during 2011, the
Loss ratio deteriorated from 18.4% in 2010 to 39.9% in 2011 and it
stagnated in 2012 as premium and claims increased in the same
proportions from 2011 to 2012.
46.2
31.4
18.4
39.9 38.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2008 2009 2010 2011 2012
Evolution of the loss ratio (in %)
26
3.9.2 Loss Ratio of SEP is the highest, on account of the large claims they
have paid during 2012 followed by MEXIM (i.e. 182% and 104%
respectively). EGFI which paid the highest claims in 2012 has a loss
ratio of 61%.
3.9.3 By line of business, the average loss ratio of MT and ST business in
the last 5 years is 43%. However, unlike ST loss ratio which is
almost stable, the MT loss ratio is very volatile (i.e. 90% in 2008
compared with 7.5% in 2010).
3.9.4 The loss ratio of the domestic business is in the upward trend
increasing from 5.7% in 2008 to 45.7% in 2012 due to higher
growth of claims compared with premium earned.
3.9.5 The loss ratio under “Other business” increased to 82% in 2012 due
to the claims paid by MEXIM, as explained in point 3.8.3.
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2008 2009 2010 2011 2012
Evolution of the loss ratio (in % )
ST
MT
Domestic
Others
27
3.10 Outward reinsurance
3.10.1 The ceded volume of business to the reinsurance market increased
by USD 1.5B in 2012 ( or 15.8%) increasing from USD 9.5B in
2011 to USD 11.0 B in 2012. This is mainly due to the increase of
ceded volume of Turkexim by USD 1.0B and MEXIM by
USD 0.8B.
3.10.2 Turk Eximbank, ICIEC, LCI and MEXIM account for 84% of the
ceded business of all AMAN UNION full members in 2012.
7,3186,709
7,720
9,483
10,982
0
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 2011 2012
Evolution of the ceded volume of business (in USD million)
28
3.10.3 The premium ceded by AMAN UNION members to reinsurers
increased from USD 25.6m in 2011 to USD 30.8m in 2012 (+20%)
mainly as a result of the increase of the ceded premium of Turk
Eximbank by USD 1.7m, CAGEX and LCI by USD 0.5m.
6,520
959.83
868.79
864.07
1,769
Breakdown of the outward reinsurance business in 2012 (in USD million)
Turk Eximbank
ICIEC
LCI
MEXIM
Others
26 26.3
23.225.6
30.8
0
5
10
15
20
25
30
35
2008 2009 2010 2011 2012
Evolution of Premium ceded (in USD million)
29
3.10.4 Turk Eximbank, LCI, ICIEC and CAGEX account for 89% of the
premium ceded in 2012.
4. CONCLUSIONS
- 2012 appears to be a good year for AMAN UNION members with an
increase in premium written by 26%, in the business insured by 12%
and in the recoveries by 235%. The average premium rate has also
improved (i.e. 0.58% in 2012 vs. 0.51% in 2011) and the loss ratio has
stagnated (around 93 %).
- Member Countries’ ECAs still face some challenging issues such as
the lack of reliable credit information on buyers (mainly in the GCC
and subasaharan countries), low awareness amongst exporters, limited
reinsurance coverage on higher risk countries, competition from
16.1
3.7
3.7
3.8
3.5
Breakdown of premium ceded by ECA in 2012 (in USD million)
Turk Eximbank
ICIEC
LCI
CAGEX
Others
30
multinational insurance providers, lack of adequate IT infrastructure,
low capital base, and training and development needs of staff.
Though many of the problems are systemic in nature, there are some
problems which can be effectively dealt with by the ECAs.
Cooperation among ECAs and close coordination with other
concerned government agencies are some of the ways in which the
above given problems can be tackled. The proposed areas of
collaboration include knowledge sharing, credit information,
insurance and re-insurance.
To solve these problems, AMAN UNION Secretariat General organized
annual technical training programmes with the objective to improve the
technical capabilities which benefited a large number of AMAN UNION
member staff.
The SG has also established the Database Project which shall help the
Subscribers to have reliable credit information at a reasonable cost.