Institution details
SERV - Swiss Export Risk Insurance (SERV)
Key facts
- Established in 1934
- Ownership: Public
Part of the OECD
Part of the Berne Union
- Zeltweg 63
- +41 58 551 5555
- https://www.serv-ch.com
Latest update: 03/12/2021
| rating type | rating agency | type | rating |
|---|---|---|---|
| Institution rating | S&P | Foreign currency | AAA |
| Country rating | S&P | Local currency | AAA |
Products
- Buyer credit insurance
- Short-term insurance
- Working capital insurance
- Other products
Buyer Credit Insurance
- Provides insurance to financial institutions against claims from foreign buyers
- Policies may be issued in CHF, EUR, and other convertible currencies
- Cover: Up to 95%
- Mixed credit (blended finance) modality: SERV can provide two tranches of financing for export credits based on international treaties
- One loan is subject to state preferential conditions (concessional financing)
- The other is subject to market conditions (typically secured via SERV insurance)" - SERV can provide buyer credit under corporate, sovereign, and project financing modalities
- A type of buyer credit offered by SERV to a refinancing financial institution to honor the payment obligations imposed by a refinancing loan agreement
Short-Term Insurance
- Covers Swiss exporters of goods and services from non-payment from foreign buyers
- Cover: Commercial and political risks
- Tenor: Up to 2 years
- Sub-products:
- Pre-shipment risk insurance: Covers exporter’s costs if production stops due to an insured event
- L/C confirmation insurance: Covers a Swiss bank for foreign financial institution’s L/C
- Contract bond insurance: Losses to a financial institution caused by foreign buyer calling a contract bond (unfair calling) that was furnished to secure the exporter’s contractual obligations or caused by political risk (fair calling)
- Counter-guarantee: Maximum cover up to 100% of the Swiss exporter’s payment to the guaranteeing financial institution in event a contract bond is called and after the exporter settles with the financial institution; transaction must also have contract guarantee insurance
- Confiscation risk insurance: Covers losses due to confiscation or similar measures taken by foreign countries; it covers the exporter’s costs for owned or leased exported goods for purposes such as providing contractual services, storage, exhibitions, or testing
- Global insurance for the science industries: Insures a group of science industry exporters to buyers in various non-marketable countries with a single policy for a period up to 12 months "
Working Capital Insurance
- Available to financial institutions in support of direct or indirect Swiss exports
- Funds may only be used if export transaction is insured with SERV
- Cover: Up to 95%
Other Products
- L/C confirmation insurance covers up to 95%; commitment usually within 24 hours
- Refinancing guarantee provided to financial institutions to allow lender to refinance on more favorable terms; cover up to 100%
| Modality | Tenor | Cover type | coverage |
|---|---|---|---|
| Insurance | Short/medium/long-term | Comprehensive | 95% |
| Insurance | Short/medium/long-term | Political | 95% |
Performance highlights
What's new?
- As of January 1, 2018, the SERV-covered share of a project volume for project financing in High Income OECD Countries with a credit period of up to 14 years will be limited to 35%
- The Federal Council of Switzerland decided to increase SERV’s framework of obligation, which represents the maximum scope of its insurance obligation, from CHF 2 billion to CHF 16 billion
- No minimum transaction size
- Eligibility: - At least 50% Swiss content - Special transactions may be considered with Swiss content lower than 50% (e.g., if exporter’s value driving activities located in Switzerland)
- Premiums are usually paid in CHF; policies can be in other currencies
- SERV can issue an insurance commitment in principle (ICP) before exporter concludes an export contract (during the bidding phase) - The ICP confirms that SERV will insure a transaction as required if the circumstances and legal position does not change substantially - The commitment is valid for 6 months and can be extended - SERV will convert the ICP to an insurance policy at exporter’s request
- Reinsurance agreements and coinsurance agreements with Austria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Japan, Luxembourg, Netherlands, Poland, Spain, Sweden, and U.S.
- Anti-corruption requirements
- For transactions larger than CHF 10 million to poorer developing countries, applicant required to answer questions about employment, working conditions, and social issues in the project country
- Insurance committee meetings are held once monthly