Questions and Answers: Federal guarantees for Euler Hermes

1. Is the federal guarantee a rescue package for the credit insurers?
No. It is the joint goal of the German Federal Government and the credit insurers to safeguard the German economy and its supply chains and to prevent any chain reactions from occurring. By participating in the joint protective shield for German companies, credit insurers are supporting and guiding companies in an exceptionally difficult phase. In doing so, they may guarantee higher risks under the German Federal Government’s guarantee than would normally be justified on the basis of an actual risk assessment. At the same time, by assuming a substantial share of the losses and ceding around two-thirds of their premium income, they are sharing the risk in a spirit of solidarity, thus making a fundamental contribution to the German economy in efforts to cope with the economic consequences of the coronavirus pandemic. This will benefit companies that are fundamentally healthy but are currently facing difficulties due to the consequences of the coronavirus pandemic.

2. What does the agreement mean for me as a policyholder? Do I have to turn to the Federal Government or will Euler Hermes remain my contact partner?
There is no change for you as our customer. Your contact is and will remain Euler Hermes. Euler Hermes will settle the indemnification payments with the Federal Government.

3. How long is this agreement to remain in force?
The agreement will remain in force until 31 December 2020.

4. What products does the protective shield cover?
The protective shield for German companies covers all Euler Hermes commercial credit insurance products, such as Corporate Advantage, WKV 2003 or WKV-M. It also includes credit insurance for capital goods. The guarantee is available for German policyholders. Our Surety & Guarantees and Fidelity products are excluded.

5. Is the federal guarantee available for World Agency clients?
The protective shield for German companies is available to all policyholders domiciled in Germany, irrespective of the commercial credit insurance product they use. All co-insured companies domiciled inside or outside Germany are also included. In any case, Euler Hermes Germany must be the insurer.

6. What other options do you have?
For companies in the EU and in core OECD countries for which we cannot maintain insurance cover for creditworthiness reasons, it is possible to apply for cover under the government export guarantee scheme in addition to your policy until the end of the year. Further information can be found on this website https://www.agaportal.de/exportkreditgarantien/praxis/marktfaehige-risiken

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