Basis

Insurance premiums generally have two components:

• A premium covering the political risk, including transfer risk and risk of force majeure
• A premium covering the economic risk (del credere surcharge)

The amount of the political (country) risk premium and the economic risk premium depend on the following factors:

• Country category of the foreign buyer's or guarantor's country
• Duration of the export transaction and its terms and conditions of payment (risk period)
• Cover ratios for the political and economic risk
• Basis for calculation (credit amount, production costs etc.)

The amount of the economic risk premium depends on two additional factors:

• Type and creditworthiness of the foreign buyer or guarantor
• Securities (reduce the economic risk premium)

SERV may apply other reductions and surcharges to the insurance premium. The premium cover practice dictates the percentages and application criteria.

All the insurance premiums are shown as a percentage of the basis for calculation.

Insurance premiums for counter guarantees and working capital insurance are based on the performance rating of the exporter.

Insurance premiums for larger transactions in countries classified in Country Category 0 are set based on current market prices.