Correction factor

SERV uses correction factors (CFs) to structurally adjust the premium level for each insurance product, i.e. to lower it compared to the OECD minimum premiums if the requirements of the Arrangement on Officially Supported Export Credits are not applicable.

Correction factors are set for entire classes of insurance products, not for individual transactions. They vary depending on the object of cover, the risk structure, loss experience with an insurance product and SERV's international competitiveness.

Correction factors are specified in the premium cover practice.