Insurance: Export credit insurance

United Kingdom

The Council adopted Directive 98/29/EC on the harmonisation of medium and long-term export credit insurance. The Directive sets out common principles for export credit insurance relating to the scope of cover, premiums, the determination of country cover policies and notification procedures.

The Directive applies to insurance cover for export transactions for goods and/or services originating in a Member State and involving a repayment period of two years or more or a manufacturing period and a repayment period of two years or more in total. The Directive applies insofar as the cover is provided directly or indirectly for the account of or the support of one or more Member States. The Directive does not apply to cover for advance payment, performance and retention bonds, or for risks relating to construction equipment and material when locally used for the performance of the commercial contract.

The Directive aims to prevent competition distortions arising from differences between Member States' provisions on insurance provided to nationally-based companies. It replaces two 1970 Directives which covered public and private sector credit insurance.