Exchange Risk Insurance

Exchange Risk Insurance protects you against the risk that you will receive less from your foreign currency receivables as a result of a decrease of the currency’s exchange rate against the Euro. This insurance can be issued from the date a firm offer has been made. There are two versions: insuring the exchange risk during the tender phase only (tender-to-contract cover) or insuring the exchange risk during the tender phase and the subsequent contract phase.

The insurance covers the risk against an exchange loss on your receivables resulting from a decrease of the exchange rate of a currency against the Euro. With our Exchange Risk Insurance you can rely on an exchange rate that is guaranteed by Atradius. However, in case of a rise in the exchange rate, the exchange-rate profit must be transferred to Atradius after conversion of the contract sum. The covered percentage is always 100%. This insurance therefore does not have an uninsured portion. Atradius issues a guaranteed rate for each instalment that you wish to insure against exchange risk at any specified date. Provided you submit your application in time, the rate or series of rates is set two working days before your offer is submitted.

The guaranteed rate is based on the currency’s forward rate of exchange on the forward exchange market at that moment (the outright forward). If you want cover for the tender-to-contract-phase only, a single instalment and a single guaranteed rate will be set for the closing date of your offer.

Currency

We must receive the application at least five days before a firm offer is made. Furthermore, the transaction must also comply with the relevant international agreements, such as the Consensus guidelines. The underlying export transaction will have to serve an acceptable Dutch interest as well. Standard cover is available on the USD (US dollar), JPY (Japanese Yen), GBP (pound sterling), CHF (Swiss franc), DKK (Danish krona), NOK (Norwegian krona), SEK (Swedish krona), CAD (Canadian dollar), and AUD (Australian dollar). In exceptional cases, cover can be given for currencies with a stable link to the Euro or the US dollar and the currencies of the new EU member states (in these cases the premium will be higher).

Premium

The premium payable for exchange risk insurance depends among other things, in part on your choice: would you like insurance for the exchange risk during the tender phase, or would you also like cover during the contract phase. The premium due for the tender phase will be set annually. There will be a premium surcharge for non-standard foreign currencies. Part of the premium is non-refundable: 1/20^th (or 5%) of the premium calculated for the entire offer period is due when the insurance is taken out. We will charge the remainder of the premium only if you have been awarded the contract.

If you decide on the version with cover during the contract phase, your additional premium will be 1/12% per month on the outstanding portion of the insured amount, calculated from the date the contract is effective.

For more information on our exchange rate insurance you can contact one of the persons that are mentioned alongside.