Credit insurance

Bpifrance Assurance Export protects you against risks incurred during the execution or the payment of a contract, all at competitive terms. 

Presentation

Credit Insurance meets your needs and is tailored to all your transactions with an overall term (execution and payment) of more than 2 years:

• Whatever the size of your company 

• Whatever the financial arrangement of your contract, i.e. at a CIRR base rate, augmented rate (“taux construit”) or adjusted rate (“taux adapté”) (cash, supplier credit, discount and bank assignment, letter of credit confirmation, buyer credit, project finance, structured finance, etc.) provided that the deal is located in an open country, within the cover policy defined annually by the French State 

Four good reasons to take out credit insurance

  1. Bpifrance Assurance Export protects you against the risks of an interruption in your export contract and/or non-payment resulting from a commercial event (default or insolvency of your debtor) or political event. 
  2. Bpifrance Assurance Export supports you over the entire term of your contract: from bond issuing till the end of contract execution.
  3. Bpifrance Assurance Export offers you the benefit of its expertise (analysis of country risk or project risk, assessment of foreign buyers and banks, CSR assessment).
  4. Bpifrance Assurance Export compensates your claim based on the results of its in-house analysis and takes part in debt collection proceedings.

 

Insurance for banks

Policy management tailored to the size of your company

Insurance requests submitted by SMEs (turnover ≤ €150m) are managed by a team of SME’s specialists and benefit from adjusted terms of cover:

• Percentage of cover raised to 100% for Supplier Credit Insurance, Discounts and Supplier Credit Assignments Insurance 
• Percentage of cover raised to 100% for Insurance on Letter of credit confirmation Insurance for settlement of contracts concluded by SMEs (turnover <= €75m)
• Simplified underwriting process
• Bpifrance Assurance Export can take over the debt collection management

A mechanism taking into consideration the company’s contribution to the French economy 

French exporters of any size and working in any business sector may apply for the “Pass Export” mechanism.
The Pass Export is a trust-based partnership established between the French State and the French exporter, which takes into consideration the exporter’s contribution to the French economy. 

An exporter with Pass Export receives, over the term of validity of the pass, maximized cover within the OECD Arrangement rules, without being subject to a requirement in terms of a minimum percentage of national content set on a contract-by-contract basis. In exchange, the exporter undertakes to have a minimum national content in all export covered contracts, and may also be called on to make additional, broader economic and industrial commitments contributing to the development of the French economy.  

A mechanism taking into consideration the project’s contribution to the French economy 

Strategic Projects Insurance covers projects that do not qualify for Credit Insurance because they do not meet the criteria for the minimum national content or are not subject to an export contract. The project must contribute strategically to the French economy and be completed outside French territory.

Eligible contracts include:
• Commercial contracts or shareholder loans of a French company or its local subsidiary, or
• Loans granted by a French or foreign credit institution.

This new mechanism is designed to promote financing for projects completed outside France by French companies and considered “strategic” for the French economy, taking into consideration the overall assessment of the company’s contribution to the French economy.

For more information

Insurance for French exporters

HOW IT WORKS? 

On receiving an insurance request, we analyse the request (eligibility based on OECD Arrangement criteria, the French Anti-Corruption Act, rules on social and environmental impact, etc.) and assess the associated risks.
 
After completing our analysis, the application is submitted for a decision either to the Internal Committee (for delegations granted by the French State to Bpifrance Assurance Export) or to the Interministerial Committee which rules case-by-case on the terms of the guarantee undertaking to be issued.

A guarantee undertaking, valid 4 months (or 6 months for Unconditional Comprehensive Insurance), is then issued and may be extended until the contractual documentation is signed. 

The policy may then be delivered to the exporter and/or the bank in question, which triggers the invoicing of the premium.