Trade credit insurance: theoretical background and some international practices

Olena Sokolovska

MPRA Paper from University Library of Munich, Germany

Abstract: The paper provides analysis of conceptual background of the trade credit insurance in the world. We analyzed briefly the problems, arising in insurance markets due to asymmetric information, such as adverse selection and moral hazard problems. Also we discuss the main stages of development of trade credit insurance in countries worldwide. Using comparative and graphical analysis we provide a brief evaluation of the dynamics of claims and recoveries for both short-term and long and medium term trade credit insurance in the world. For this purpose we used data on claims paid and recoveries for the period of 2005-2015. We found that the claims related to the commercial risk for medium and long trade credits in recent years exceed the recoveries, while with the political risk the reverse trend holds.

Keywords: Trade credit insurance; export credit; international trade; international finance (search for similar items in EconPapers)
JEL-codes: F10 F39 G22 (search for similar items in EconPapers)
Date: 2016-08, Revised 2016-08
New Economics Papers: this item is included in nep-ias and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74303

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