Extended export insurance options help Hungarian businesses
Perceiving the extent of the economic downturn caused by the coronavirus, the European Union has decided to temporarily allow the activities of state-owned export credit insurance agencies within the EU, which provides outstanding opportunities for HEXIM and the Hungarian export companies. Gergely Jákli, President and CEO of HEXIM, told portfolio.hu about the current situation of export insurance.
According to the president, in an economy curbed by the coronavirus, not only the losses caused by downtime are affecting businesses, but also uncertainty. Redistributing capacity in global value chains can put companies also in a favorable or unfavorable position. These uncertainties have to be priced in by the market, and HEXIM can help companies looking for stability by providing export insurance in any export relation worldwide. Insurance can provide a lifeline not only to large companies but also to many SMEs in maintaining or building the confidence that is needed to do business with existing or new foreign partners. The conclusion of the insurance contract has been halved on the basis of a new assessment methodology (from 2-4 weeks to 1-2 weeks), and the insurance premium is calculated based on the buyer’s data – in addition, in 90 percent of cases the premium can be included in the sales price.