UK, Italy, France and Germany are among the top four export markets covered under the KUKE GAP EX credit insurance facility
Nearly PLN 2 billion was the value of receivables insured by Polish exporters under the GAP EX and GAP EX+ solutions offered by KUKE.
150 exporters benefited in Q1 2021 from GAP EX and GAP EX+ insurance made available by KUKE for the duration of the pandemic. They despatched their products to approximately 700 counterparties from 33 countries. The largest sales were to customers from the UK (16%), Italy and France (14%) and Germany (13%). The top 10 also includes four countries in our region: Romania, the Czech Republic, Slovakia, and Hungary.
GAP EX solutions are guaranteed by the State Treasury and are designed for exporters who are unable to find insurance on a commercial basis for their existing contracts or wish to increase international sales. The insurance covers European Union countries and selected nine OECD markets such as the United States, Norway, and Australia.
The plastics industry accounted for almost one-fifth of coverage under GAP EX and GAP EX+ policies in value terms in Q1 2021, an increase of almost fifty per cent compared to 2020. Metallurgy accounted for 12% of the value of policies, while the food and automotive industry accounted for over 8% each. The wood and furniture sectors had a total share of 10%. Transport, construction, and electrical engineering companies were also keen to use our insurance.
The European Commission has extended until the end of December 2021 the possibility for state guarantees to be provided to insure short-term export credits relating to Union markets and selected OECD countries under instruments such as GAP EX and GAP EX+.
According to a survey conducted by the Berne Union in the first quarter of the year, export credit agencies and private credit insurers expect an increase in the value of claims paid out. This means that, thanks to the protective measures introduced by most governments, the scale of the problems caused by the pandemic has diminished, although it has not been possible to eliminate them entirely. On the other hand, insurers, especially State-owned insurers, are ready to increase their exposure and support international trade.