Spanish and German CPRI figures show shift in claims trends, says BPL Global
Spain and Germany were in the top 10 countries for credit and political risk insurance (CPRI) claims by value over the past three years, highlighting a change in collection trends, a report by specialist broker BPL Global has found.
From 2016 to the end of 2018, the broker collected $32 million and $27 million in CPRI claims from losses in Spain and Germany respectively, on behalf of its clients.
Its Market Insight Report 2019 said that while the amounts “reflect the natural progression of the market as it develops to meet rising demand to cover OECD-located risk”, the finding also “signal a shift in CPRI claim collection trends, where losses in emerging markets have historically accounted for the highest-value claims”.
Further evidence from the broker’s enquiry flow in the past six months, showed that OECD countries were the source of a third of all risk enquiries, even though the company recorded an even distribution of enquiries between continents regarding risk location.
While the CPRI market has slightly declined in overall credit capacity, the report said that non-trade credit capacity has increased by around 15 percent as non-payment public obligor and political risk credit capacities have increased.
A greater supply emphasises the market’s quick response to higher client demand, the report said, while more than a fifth of all bank client enquiries now relate to non-trade credit capacity.
The impact of Brexit was also examined, with the report concluding that the CPRI market was “well-positioned” to cope as insurers had contingency plans ready to go in the event of a “no-deal” exit.
James Esdaile, managing director at BPL Global, said: “This year’s report builds on the success of our first Market Insight report published in 2018 and addresses what was a standout year for the CPRI market. Despite the numerous challenges that have been facing our industry, we have identified significant growth across key business lines and an agility within the market to adjust to both shifting risk patterns and evolving client demand.”
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