CREDIT INSURANCE IN ISRAEL: AN INITIAL OVERVIEW AND ANALYSIS OF CONSIDERATIONS AFFECTING THE ACCEPTANCE RATE

Meital Graham-Rozen () and Noam Michelson
Additional contact information
Meital Graham-Rozen: Bank of Israel
Authors registered in the RePEc Author Service: Meital Graham Rozen

Israel Economic Review, 2020, vol. 18, issue 1, 177-214

Abstract: common practice in credit insurance is the use of acceptance rate—the amount of insurance provided relative to the amount of insurance requested— as the main parameter set by insurers which reflects the pricing of the risks in each transaction. This research aims to determine what the factors that impact the acceptance rate are. Using a novel dataset from a leading credit insurer, which includes the requested amount of insurance and the amount eventually provided, we find that the acceptance rate is impacted on primarily by the extent of the insurance company's exposure to the buyer's country, but also by the size of the insured company, the risk of the buyer with whom the company is transacting, and by the global real economic situation. These factors impact differently when the transaction involves domestic buyers or buyers abroad, apparently due to differences in information on the two types of buyers.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://boiwebrepec.azurefd.net/RePEc/boi/isrerv/IsER_18_2020_1_177-214.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boi:isrerv:v:18:y:2020:i:1:p:177-214

Access Statistics for this article

More articles in Israel Economic Review from Bank of Israel Contact information at EDIRC.
Bibliographic data for series maintained by Yossi Yakhin ().