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It’s credible, transparent, unbiased, and totally free of charge: www.tagmydeals.com Published by International Union of Credit & TXF Investment Insurers Canterbury Court Including Berne Union Prague Club Kennington Park 1st Floor 1-3 Brixton Road Thanet House London SW9 6DE 231-232 The Strand United Kingdom London WC2R 1DA United Kingdom Tel: +44 (0) 20 3735 5180 Email: [email protected] Tel: +44 (0)20 7841 1110 Fax: +44 (0)20 7430 0375 www.txfnews.com 1 www.tagmydeals.com www.berneunion.org Berne Union 2018 Contents 1 Introduction Berne Union elected officials, A note from the hosts of the 2018 AGM 19 committees and secretariat 6 Nicolas Dufourcq, CEO, Bpifrance Foreword 13 Topi Vesteri, president, Berne Union 2 Data and Statistics Berne Union totals 22 2018 H1 in review: business is stable, but risks are high and unpredictable 31 Short-term export credit insurance Paul Heaney, Associate Director, Berne Union Medium- and long-term export credit insurance Investment insurance 3 Expert Analysis MEMBER SPOTLIGHT Sinosure: helping corss-border E-commerce sellers in an expanding global market 60 New member profile: BANDEX 39 Chen Jichao, underwriter, Sinosure and Zhou Huihan, underwriter, Sinosure New member profile: ECGC Z 41 The Prague Club 25 years on 43 MEDIUM- AND LONG TERM EXPORT CREDIT Malcolm Stephens and Lennart Skarp INSURANCE Interview: Private Political Risk Insurance 64 INNOVATIONS IN TRADE TECHNOLOGY Christina Westholm-Schroder, chief underwriter, senior vice president, Sovereign Risk Insurance, and Nuria Gorog, senior vice Radical innovation in trade finance 47 president, head of credit and political risk, Christophe Spoerry, co-founder, Euler Hermes Continental Europe, Zurich Digital Agency ECAS weathering stormy seas 68 Assessing startup potential in insurtech 50 Hendrik Holdefleiss, chair of the Berne Martha Notaras, partner, XL Innovate Union MLT committee, and head of division underwriting and risk management, Euler The economic impact of smart ledgers Hermes on world trade 52 James Pitcher, associate, Z.yen Group and Credit insurance for project finance 71 programme director, Distributed Futures Mark van der Does, assistant vice president, Marsh and Abbey Sturrock, public agency, Customer expectations drive digital senior vice president, Marsh (Singapore) transformation while disruptive technology enables it 54 The LMA moves into the export finance market 77 Jérôme, Pezé, CEO and founder, Tinubu Square Kam Mahil, director (legal), LMA and Ashley McDermott, senior associate, Clifford Chance SHORT TERM CREDIT INSURANCE APPROACHES TO SUSTAINABLE DEVELOPMENT Building a digital future for short-term credit insurance - Liberty Specialty Markets online The complementary role of official platform, Toredo 57 development finance 81 2 Chris Hill, senior underwriter - global financial Paul H.J. Mudde, consultant, Sustainable risks, Liberty Specialty Markets Finance & Insurance Berne Union 2018 CONTENTS 3 Expert Analysis continued Berne Union – Offenburg University Risk outlook 129 Partnership on ‘Financing. Impact. John Lorié, chief economist, Atradius, Ludovic Together’ 91 Subran, chief economist, Euler Hermes and Mariane Søndergaard-Jensen, director, EKF Julien Marcilly, chief economist, Coface and Christine Lund Andersen, senior advisor, EKF NEW PRODUCT DEVELOPMENTS Sustainable insurance 94 Thomas Mahl, managing director, SFR Would gradual de-dollarization boost trade? 132 Consulting and Franz Karman, managing Harald Hirschhofer, senior advisor, TCX and director, SFR Consulting Niels Vermeijden, vice president, TCX Winds are changing for wind financing 98 Extending support to Indian MSMEs 134 Christian Ølgaard, deputy CEO, EKF Sunil Joshi, general manager, country underwriting and international relations, ECGC THE REGULATORY LANDSCAPE Finally: An export credit agency for Ukraine? 138 Dr Hans Janus, lawyer and consultant Export credit competition goes beyond the arrangement 100 Pekka Karkovirta, chairman of the participants REGIONAL BUSINESS DEVELOPMENTS to the Arrangement on Officially Supported Export Credits, and vice president, Finnvera The role of exports in Spain’s post-crisis recovery 140 Export credit at the OECD: Good Beatriz Reguero Naredo, director, CEO state governance and sustainability 104 account business, CESCE Silvia Gavorkníková, chair of the Export Credit and Credit Guarantee Working Party, and HBOR: 20 years of export credit insurance director of international relations, EXIMBANKA in Croatia 142 SR AOFI: Serbia has good news… 145 IWG: Time to lay the foundation stones 108 Michal Ron, IWG secretary general, managing director, head of international business, SACE Unlocking the potential of African export credit market for trade and economic transformation 146 Export finance and financial regulation 110 Professor Benedict Oramah, president and Henri d’Ambrières, advisor, export, trade and chairman of the board of directors, African project finance, HDA Conseil Export-Import Bank Economic development and protecting trade 149 POLITICAL RISK ENVIRONMENT Vinco David, secretary general, Berne Union Political risk likely to moderate returns 114 Simon Coote, deputy director, Oxford Analytica Trade at war 117 Jean Francois Lambert, founding partner, Lambert Commodities Sovereign debt restructuring and debt swap provisions 121 Paola Valerio, head of international relations, SACE SIMEST Venezuela: three scenarios 123 David H. Anderson, president, Anderson Risk Consultants and William Green, founder and managing partner, TDI 4 Member Directory Berne Union members 158 3 Berne Union 2018 Berne Union 2018 Introduction1 Berne Union 2018 The Berne Union: Who’s Who 2018 Berne Union Leadership The Management Committee consists of: President Vice President 4 Committee Chairs 13 Member Organisations The 13 Member Organisations are institutional positions, held by the two largest volume members from each of the ST, MLT and INV Committees, plus seven additional members drawn from amongst all four Committees on a voluntary, rotating, basis. All positions are held for a term of two years. President: Institutional Members: Topi Vesteri (FINNVERA) ATRADIUS Vice President: COFACE Mandisi Nkuhlu (ECIC SA) EULER HERMES Short Term Committee Chair: BPI FRANCE Verena Utzinger (SERV) NEXI Medium/Long Term Committee Chair: SINOSURE Hendrik Holdefleiss (EULER HERMES) ECGC Investment Committee Chair: EXIMBANKA SR Christina Westholm-Schroder HBOR (SOVEREIGN) KSURE Prague Club Committee Chair: US EXIM Danilo Ćirković (AOFI) AXA XL ZURICH 6 Berne Union 2018 INTRODUCTION Elected Officials President, Topi Vesteri Vice President, Mandisi Nkuhlu FINNVERA Finland | Deputy CEO, Group ECIC South Africa | Chief Operating Officer Chief Credit Officer Mandisi Nkuhlu holds the Topi Vesteri joined Finnvera position of Chief Operating in 1998 as Executive Vice Officer at the Export Credit President responsible for Insurance Corporation of running Finland’s officially South Africa SOC Limited supported export credit and (“ECIC”). guarantee system. Having ECIC is the official Export managed Finland’s state Credit Agency of South Africa and provides backed ECA business for almost 17 years, political and commercial risk insurance Topi assumed the position of Deputy CEO to facilitate export trade and investments and Group Chief Credit Officer responsible outside South Africa. for credit and analysis functions of both Mandisi has worked for various financial Export Credit Agency (ECA) as well as institutions involved in the financing of domestic SME financing business of Finnvera, infrastructure development. He spent five in October 2015. years at the Development Bank of Southern Topi is Chairman of the Board of Finnish Africa (“DBSA”) as the legal advisor to the Export Credit Ltd, the subsidiary of Finnvera Project Finance team responsible for cross- responsible for providing funded export