Comparative Comparison of Iran's Insurance and Export Guarantee System with Selected Countries and Providing Suggestions for Iran

Document Type : definition

Authors

1 . Assistant Professor of Gonbad Kavous University

2 researcher of institute for trade studies and research

3 Assistant Professor of Institute for Trade Studies and Research

Abstract

One of the major challenges of exporters in international markets is the existence of commercial and political risks that increased risk of nonpayment of an export credit. Therefore, the role of Export Credit Institutions (ECAs) to cover these types of risks through the provision and expansion of insurance (and guarantees) export credit is highly important. The main purpose of this study is investigating of Iran's export insurance and guarantee and compare it with selected countries consisting of two groups of OECD member countries (including Italy, Germany and Belgium) And non- OECD member countries (including India, South Korea and Exim Bank of Turkey). The Comparative Comparison shed light on various dimensions such as institutional structure; coverage policy and credit rating methods, premium determination framework, Mechanism for loss coverage and settlement of foreign claims; Acceptance or transfer of risk to reinsurance markets (Transfer of insurance liabilities to other insurance companies especially international institutions) and financial solvency. Based on our findings, we proposed suggestions for the development of insurance and guarantee services provided to the country's exporters, the most important of which are (1) Simplification of Administrative procedures; (2) enhancing the electronic services of the Export Guarantee Fund of Iran; (3) hedging against exchange rate fluctuation; (4) Expansion and deepening of cooperation between the Export Guarantee Fund of Iran and foreign counterparts; (5) setting up a specialized office to provide insurance and guarantee services to SMEs; (6) developing programs to guarantee the import of raw materials required by exporters; (7) establishing re-insurance companies in cooperation with international insurers; and (8) increasing the capital ratio of Export Guarantee Fund of Iran.
 

Keywords

References

 
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Commercial Surveys
Volume 20, Issue 117 - Serial Number 117
January and February 2023
Pages 81-98

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History

  • Receive Date: 11 December 2021
  • Revise Date: 04 April 2022
  • Accept Date: 13 April 2022

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