Baltic state export insurers stepping up collaboration
At their meeting held in Riga on 22 July, the Baltic state export insurers KredEx Krediidikindlustus (Estonia), Altum (Latvia) and Invega (Lithuania) decided to boost their collaboration in order to provide the region’s exporters with broader options to manage their default risks. Their collaboration encompasses an exchange of experience, harmonisation of services and the sounding out of shared business opportunities.
“Estonia created a successful state export insurance company as early as 2009, and it has been an important partner for our companies and exporters on markets both near and far. Recently, Latvia and Lithuania have also been thinking along the same lines. We in Estonia are insuring a turnover of nearly half a billion euros annually and are prepared to share our experience with our Baltic colleagues,” said Meelis Tambla, Chairman of the Management Board of AS KredEx Krediidikindlustus.
The need to share one’s experience and boost collaboration primarily derives from the daily reality of companies in the Baltic States, where goods are often sold subject to a payment deadline. However, assessment and monitoring of the financial abilities of buyers and the recovery of potential losses incurred is not normally the main activity of a company, and it makes more sense to outsource this service.
“In the case of insurance services, scaling up operations increases efficiency. There are definitely companies which are active across the Baltic region and for which the provision of relevant state export guarantees is important. The situation is the same in each of the Baltic States: it is difficult for companies to monitor the financial abilities of their buyers, and insuring default risks on a broader scale would help to increase sales,” Tambla added.