Export insurance is insurance against financial risks arising from the sale of an exportable product.
Exporters may be asked in the process of working with their customers to sell the product against credit, that is, to sell with the condition that payment will be made later, for example, after 60 days of receipt of the product. In this case, exporters face the risk of non-payment by buyers after the product arrives. Reasons for non-payment may be commercial and political disturbances in the buyer's country. When concluding an insurance contract, the Company undertakes to verify the foreign client's solvency and to indemnify for non-payment based on the export contract.
Insurance of export operations on the market of Uzbekistan is primarily carried out by “Uzbekinvest” National Export-Import Insurance Company. In practice, the Company is entrusted with the functions of the state export risks insurance agency (EСA) of the Republic of Uzbekistan.
Today, Uzbekinvest company offers the following insurance products to local exporters and commercial banks:
- Comprehensive insurance of export contracts by the “Supplier credit” scheme
- Insurance against non-fulfillment of the guarantee obligations by the guarantor of the foreign buyer
- Insurance against non-fulfillment of irrevocable obligations under a letter of credit issued by the foreign buyer's bank
- Insurance of loans of commercial banks according to the “Customer credit” scheme
- Insurance against termination of the export contract
- Insurance against expropriation, nationalization and seizure of investments
- Advance payment insurance