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FAQS

General

SERV issues insurance policies in the usual, freely convertible currencies, but usually in the currency of the export transaction or the associated financing transaction (contract currency). The premium is generally payable in Swiss francs unless a different premium currency has been agreed on the application. SERV generally pays out compensation in the contract currency

The country categories (CCa) range from 0 (lowest risk) to 7 (highest risk). They are determined within the OECD. Country analysts from the export credit agencies (ECAs) of all OECD member countries meet four times a year to review and, where necessary, adjust the classifications of individual countries.

No. SERV is required to be economically viable (art. 6 (1) a SERVG) and must pay its own costs by charging premiums large enough to cover the risks it takes on.

SERV is not profit-driven since it is an institution under public law owned by the Swiss Confederation. Its mission is to support Swiss exporters. However, SERV is required by law to be economically viable and pay its own costs. To do so, it charges premiums large enough to cover its risks.

A credit period of less than 24 months is considered short-term. If the credit period is 24 months or more, the transaction is considered medium- or long-term. The credit period covers the period between delivery as contracted and the final agreed instalment payment. It is not affected by the manufacturing period.

Benefits of SERV insurance

You can ask SERV for an insurance commitment in principle (ICP) before concluding an export contract (during the bidding phase). The ICP confirms that SERV will insure a transaction as required as long as the circumstances and legal position does not change substantially. The commitment is valid for six months and can be extended. We will convert the ICP to an insurance policy as soon as you are ready. The ICP is optional: If you already have a final export contract, we will issue an insurance policy right away.

SERV does not charge minimum premiums. Therefore, you can also insure exports with a low contract value at reasonable rates. Premiums depend on various factors, including the destination country, contract value and the term of the export transaction, the creditworthiness of your customer or the guaranteeing foreign bank.

SERV has two products that prevent exports from failing due to the exporter’s lack of liquidity. The counter guarantee and working capital insurance protect your bank in case you, the exporter, fail to live up to your commitments. Your bank can then give you new loans or guarantees without applying the full amount toward your credit limit. This allows you to obtain the funding needed to accept new export orders.

The maximum cover ratio for most SERV products is 95%. The policyholder is responsible for the remaining 5%.

Generally, yes. Keep in mind, however, that SERV is only allowed to supplement, not replace, the insurance available from private credit insurers (subsidiarity principle). SERV's products are primarily designed for exports to politically or economically unstable countries. We therefore have restrictions on short-term exports to core OECD countries. Furthermore, some countries have extraordinary risks that SERV cannot insure at all or can only insure on a case-by-case basis. If you want to insure an export to one of these countries, you should contact us as early as possible. Details about individual countries are available in the List of countries.

Exports are exposed to various risks not covered by SERV, including transport or currency risks.

  • Political risks and transfer risks abroad
  • Del credere risk (commercial risk)
  • Force majeure risks if they cannot be insured at reasonable terms by private insurance carriers

SERV covers exports from all sectors: consumer and capital goods as well as services such as construction, maintenance and engineering projects or licence and know-how agreements. To learn more, see page 10 of our SERV Compact brochure.

SERV's products protect your company at every stage of an export transaction: from submitting a bid to paying the last loan instalment (and even beyond for certain contract bonds).

SERV insures Swiss exports against political risks and del credere risk (commercial risk). In other words, we give you, the exporter, the security of knowing that you will be paid for your goods and services. Moreover, our insurance and guarantees help you finance your export transactions and conserve your company's cash. We also advise you on key issues during transactions, including contract drafting.

  • Security: SERV protects your company from default and reassures you that you will be paid for risky export orders. We insure exports that are not covered by private export credit insurers.
  • Easier financing: If you have SERV insurance, banks will be more inclined to grant much-needed loans or guarantees for your exports. It is also easier to assign claims to your bank. That way, you can offer customers excellent financing terms and still receive your money immediately.
  • Liquidity: If you take out SERV insurance, banks can give your company loans or guarantees without applying the full amount toward your credit limit. You can conserve cash and maintain the funds needed to accept new export orders. 
  • Advice: Our staff has a wealth of experience analysing country, bank and company risks and processing export transactions. They can be particularly helpful for exporters who are entering a new market or doing business with a new customer.

Conditions for the conclusion of an insurance contract

No. SERV regularly insures transactions with up to 80% foreign content. It may exceed 80 percent under certain conditions and at the exporter's request.

Generally, foreign content may not make up more than 80% of the value of your export (cf. Swiss share of value added). Furthermore, SERV has to follow international rules on down payments, credit periods, etc. when insuring export transactions. Contact us early, ideally before drawing up the export contract. That way, we can advise you on the best way to structure your transaction to maximise your benefit from our insurance.

Yes. SERV insures exports of services as well as goods. You can thus insure any kind of service that your company provides to foreign customers. This typically includes services performed by architectural or engineering firms, the production of studies, software, multimedia or advertising, licence agreements, training courses or construction services.

No. SERV has no minimum sizes or minimum premiums for exports or companies.

Yes, SERV’s insurance is ideal for SMEs. SERV does not charge minimum premiums. It also has no minimum requirements for company size or insured contract value. If you have working capital insurance or the counter guarantee, it will be easier to obtain low-cost loans for exporting your goods and services and conserve your company's cash. SERV also helps you assess country, buyer and bank risk and process export transactions.

Your company has to meet only one requirement: It must be listed in the Commercial Register of Switzerland. Your export, however, must meet additional requirements.

For a specific application

We will need the application form, which you can complete online in our application portal. Depending on the customer, export transaction and insurance type, we may need more details for our risk assessment. This may include information on your company, the customer (key figures, balance sheets, income statements) or the project's social and environmental impact. The application portal will tell you what information to provide in your specific case.

The information provided on the application is binding! SERV does not review export contracts or other documents before issuing an insurance policy. (Any documents or contracts that you send to us will be returned unread.) We only review contracts and documents if a claim is filed. If the application information is incorrect, we may reduce your indemnity or deny the claim.

You can apply directly for an insurance policy or a guarantee if the export deal has been signed. Before signing the contract, it is possible to make an enquiry about an insurance commitment in principle. This serves to make it clear that the transaction is eligible for cover in principle and what premium can be expected. It also helps create certainty in negotiations. If there is no change in the factual and the legal situation, the insurance commitment in principle is valid for six months. We recomment you to make your applications early and before the commencement of the risk at the latest.

You can only apply for SERV insurance or guarantees through our online application portal. Please note that the information you provide on the application is binding.

You should contact us as soon as possible, ideally before drawing up the contract. That way, we can advise you on the best way to structure your transaction to maximise your benefit from our products. Also, we can help you analyse country, buyer and bank risks.

The best way to contact us is by phone. This gives us an opportunity to identify your needs and answer your questions during the first call. If your company is located in German- or Italian-speaking Switzerland, please dial +41 (0)58 551 55 15. If it is in French-speaking Switzerland, please dial +41 (0)21 613 35 84.

With a current insurance policy

Yes. If you obtain SERV’s prior consent, you can transfer/assign insurance policies to a bank.

Do not take any hasty action. Instead, notify your SERV client advisor immediately of the payment default, preferably in writing. Then, start the standard collection process for your industry.

The information in the insurance policy (including term and order volume) is binding; please notify us immediately if it changes. As policyholder, you are also required to inform SERV of any and all events that indicate an imminent loss (e.g. request for an extension of payment by the customer, or missed payments). If a loss occurs, we will use the information you provide. Losses that occur after the policy “end date” are not covered.

At the occurrence of an insured risk, a waiting period begins. The waiting period for products for financial institutions is one month, three months for products for exporters. The waiting period should be used to avert or to mitigate a loss. On expiry of the waiting period, your indemnification request will be treated. After proof has been established the request will be acknowledged and you will be indemnified.  The duration of this period as defined in SERV's GTC is calculated based on Article 77 paragraph 1 of the Swiss code of obligations.

Impact of the Ukraine conflict on current and future SERV insurance cover

The first step is to ascertain whether your bank can accept and convert the payment in roubles. In principle, payments in roubles are acceptable and are preferable to no payments at all. However, only the sum that is eventually paid into your account in the contractually agreed currency is relevant – no acknowledgement may be granted to the buyer/debtor that the debt has been settled other than on the basis of this amount. 

For example, if you are owed

  • a contractual debt of CHF 100,000
  • and are offered payment in RUB at an exchange rate of 1:130 (i.e., RUB 13 million),
  • you should not acknowledge this as payment of your debt, unless
  • CHF 100,000 is actually paid into your account following transfer and conversion. 

If, on the other hand, you receive less after transfer and conversion than you are owed under contract, you can apply to SERV to be compensated for this discrepancy.

SERV will subject the risk subjects in the affected countries to a stringent examination based on strict criteria, as for every country for which it expects a heightened risk of credit default. A transaction will be recommended for cover solely where this examination reveals that the credit is very likely to be able to be repaid. SERV expects that it will increasingly become impossible to insure transactions from a risk perspective.

The policyholder must show which financial institutions are involved in the payment flow and must plausibly establish that those institutions will be in a position to transfer or accept payments.

For the time being, SERV cannot issue any insurance policies based on Insurance Commitments in Principle. Current Swiss sanctions prohibit SERV from providing export risk insurance for trade with the Russian Federation (cf. Art. 17 of the Ordinance on Measures in connection with the Situation in Ukraine). If the export transaction falls under one of the exceptions set out therein, SERV can re-examine the application (see previous question).

As a matter of principle, SERV cannot currently offer insurance for any new transactions with Russia. The ‘Ordinance on Measures in connection with the Situation in Ukraine’ of 4 March 2022 does, however, allow for certain exceptions. SERV will thus continue to examine applications for new transactions with Russia where:

  • the order value is under CHF 10 million and the exporter is an SME;
  • the transaction is for food or for goods intended for agricultural, medicinal or humanitarian purposes.

The policyholder must show which financial institutions are involved in the payment flow and must plausibly establish that those institutions will be in a position to transfer or accept payments.

Owing to the current situation, SERV believes that the likelihood of payment defaults occurring is very high. New cover will therefore be considered solely for applications with an exceptional credit rating and guaranteed payment methods.

As a matter of principle, SERV cannot currently offer insurance for any new transactions with Belarus. The ‘Ordinance on Measures against Belarus’ of 16 March 2022 does, however, allow for certain exceptions. SERV will thus continue to examine applications for new transactions with Belarus where:

•    the order value is under CHF 10 million and the exporter is an SME;
•    the transaction is for food or for goods intended for agricultural, medicinal or humanitarian purposes.

The policyholder must show which financial institutions are involved in the payment flow and must plausibly establish that those institutions will be in a position to transfer or accept payments.

The sanctions must actually prevent a payment being accepted (by rendering it illegal), i.e., the creditor themselves would have to anticipate measures at the place of receipt of payment (it is assumed that the sanctioning authority would have access to the creditor at the place of receipt).

Political risks are covered if they were not foreseeable when the insurance was taken out and if they are the direct cause of the foreign customer’s inability to meet an existing payment obligation, as well as where a payment may no longer be accepted in Switzerland as a result of sanctions. The sanctions must actually prevent a payment being accepted (by rendering it illegal), i.e., the creditor themselves would have to anticipate measures at the place of receipt of payment (it is assumed that the sanctioning authority would have access to the creditor at the place of receipt).

Political risks are covered if they were not foreseeable when the insurance was taken out and if they are the direct cause of the impossibility/unreasonableness to continue production/delivery or of the non-payment of agreed costs.

Does SERV also insure export transactions against the risk of sanctions?

Under SERV insurance, SERV clients are covered against political risk, which also includes sanctions. In principle, SERV will therefore cover insured events under existing insurance policies where those events arise owing to a political risk. All sanctions (whether Swiss or international) that can directly lead to an insured event are insured against.  

Definition: Sanctions

  • are extraordinary measures by states or organisations;
  • must have been unforeseeable at the moment SERV’s liability commenced;
  • must have directly brought about the claim.

For insured claims, sanctions must actually prevent a payment being accepted (by rendering it illegal), i.e., the creditor themselves would have to anticipate measures at the place of receipt of payment (it is assumed that the sanctioning authority would have access to the creditor at the place of receipt).

 

 

Under SERV insurance, SERV clients are covered against political risk, which also includes war or war-like events such as sanctions. In principle, SERV will therefore cover insured events under existing insurance policies where those events arise owing to a political risk. SERV is also in the process of contacting those of its clients whose SERV-insured business is affected by the current situation. It is happy to support and advise its clients in processing their export transactions to ensure optimal cover and to resolve any problems that may arise.

Under the General Terms and Conditions, if there are risk-aggravating factors such as a conflict in the target country or foreseeable interruptions to payment flows, no further production and/or delivery may be carried out without SERV’s approval. Please contact SERV at your earliest convenience.

Insurance cover for business disruptions due to COVID-19 (coronavirus) – frequently asked questions

Supplier credit insurance protects you against a foreign customer not meeting its payment obligations towards you. However, the receivable must actually exist: the existence, due date and validity of the insured receivable must always be proven in the event of a claim. Whether your foreign customer is still obliged to pay despite the COVID-19 crisis – and, thus, whether the receivable actually exists – would depend on the export contracts that you have agreed with one another. If the receivable exists and the payment default is due to the foreign customer’s insolvency or unwillingness to pay, this constitutes an insured del credere risk. This also applies if the customer’s insolvency is the result of a pandemic.

A pandemic may be a valid reason for why a borrower is unable or unwilling to repay a loan. However, the cause of the borrower’s insolvency or unwillingness to pay is not relevant for insurance provided by SERV.

If a claim does not constitute an insured commercial risk (see previous question and answer), you may be covered directly for political risk or force majeure in certain cases: force majeure events outside of Switzerland are co-insured by SERV if they cannot be insured on the private market. Epidemics/pandemics are also classed as force majeure. Extraordinary government measures to curb the effects of COVID-19 may fall under the category of political risk. These risks are covered if they were not foreseeable when the insurance was taken out and if they are the direct cause of the foreign customer’s inability to meet an existing payment obligation.

You should first try to find an amicable solution with your customer, if necessary by changing your contractual supply/performance obligations. It is important that you inform us immediately of any delays in supply/performance as SERV must agree to such changes and amend the policy accordingly.

If a claim does not constitute an insured commercial risk (see previous question and answer), you may be covered directly for political risk or force majeure in certain cases: force majeure events outside of Switzerland are coinsured by SERV if they cannot be insured on the private market. Epidemics/pandemics are also classed as force majeure. Extraordinary government measures to curb the effects of COVID-19 may fall under the category of political risk. These risks are covered if they were not foreseeable when the insurance was taken out and if they are the direct cause of the impossibility/unreasonableness to continue producing/supplying or of the non-payment of agreed costs.

Pre-shipment risk insurance primarily serves to protect you against the financial consequences of a production stoppage. If it becomes impossible, or even unreasonable, for you to continue producing or shipping goods due to a breach of contractual obligation by a customer (for example, if the customer terminates the contract because of COVID-19 or refuses to accept any more goods), your production costs are covered in principle. You would also be insured if a foreign customer does not pay the production costs that it owes you upon termination of the export contract. We recommend checking the conditions in your export contract relating to termination by the customer in the event of force majeure and the corresponding legal consequences; if the customer is contractually entitled to terminate the export contract without owing compensation, this would not constitute an insured (commercial) risk.

Existing insurance cover is not affected (voided or restricted) by the COVID-19 crisis. However, the circumstances may give rise to a risk aggravating factor, in which case SERV’s consent would be required in order to continue producing or supplying under your export contract.

SERV insurance policies can only be taken out before the occurrence of an insurable risk. Risks that have already occurred at the time of issuance of the insurance policy cannot be insured.

Measures to support the Swiss export industry

Due to the economic impact of the COVID-19 pandemic, the Federal Council has approved a temporary amendment to the SERV Ordinance. This has been done so that SERV can support Swiss exporters quickly and easily with its insurance offer and thereby enhance their competitiveness and aid liquidity.

Under the original ordinance (SERV-V), SERV was only able to apply increased cover ratios for counter guarantees and working capital insurance in the case of a justified application. This justified application is no longer required and the following now applies:

  • The maximum cover ratio for working capital insurance is 95 per cent.
  • The maximum cover ratio for counter guarantees is 100 per cent.

SERV was previously only able to cover export transactions with a Swiss content of less than 50% of the SERV-covered part of the order value if it could be substantiated that the insurance is in line with the objectives and principles of SERV’s business policy. Providing this proof entails a good deal of time and effort on the part of SERV’s clients, which is why the Federal Council has decided to simplify the process:

  • Export transactions with a Swiss content of at least 20 per cent of the total order value will now be insurable without additional evidence.
  • Export transactions with a Swiss content of less than 20 per cent of the order value can be insured if it has been substantiated that the insurance is in line with the objectives and principles of SERV’s business policy.

The measures enter into force on 1 September 2020 and apply until 31 December 2022.

SERV has been introducing measures to support the Swiss export industry during the COVID-19 pandemic since 17 April 2020. Further information can be found here.

Market Finder: Finding sales markets online

The new online platform Market Finder offers Swiss exporters numerous benefits.

Market Finder features a tool in which you can enter your product in a search field. The analysis returns information on how often a month the product was entered in Google and in which country. In this way, you can optimise your e-commerce activities with regard to the sales markets.

But what are e-commerce activities? How can marketing measures be implemented effectively on the Internet? The platform conveys specific knowledge on this subject. It demonstrates the efficient use of the Internet for sales purposes and provides useful hints for online marketing, web analytics and online sales.

Furthermore, the platform offers a knowledge base that ranges from the financing of exports, to growth strategies, to insurance options for the export business. Here, the Swiss Export Insurance (SERV) explains how liquidity bottlenecks and risks of default can be prevented.

Market Finder was launched on 19 November 2015. The platform was developed by Google Switzerland and Switzerland Global Enterprise (S-GE) in collaboration with SERV and others.