The volume of operations of KredEx Credit Insurance grew by EUR 17 million
In the first six months of this year, AS KredEx Credit Insurance insured the risks of Estonian business operators in 62 countries, with the volume of insured companies’ invoices growing to EUR 229 million, an increase of nearly EUR 17 million compared to the same quarter last year.
Similarly to previous years, credit insurance services are being used most by exporting companies, accounting for 70% of the portfolio of KredEx Krediidikindlustus.
In the assessment of Meelis Tambla, Chairman of the Management Board of AS KredEx Krediidikindlustus, surprises caused by outstanding invoices should not be regarded as a business risk, and growth in the volume of operations shows that this perception is slowly taking root. “A company should focus their efforts on selling and on developing and building a product or service. If you are going to deliver goods before payment, it is important to know the buyer’s background. Assessing and monitoring the financial abilities of buyers is normally not the main activity of a company; as a result, it may prove to be a damper on the company’s growth,” Tambla reasoned.
The major target countries for insurance were Sweden, Finland and Poland. The volume of operations grew the most in the first two quarters of the year in Sweden, Norway, Latvia and Lithuania. In terms of sectors, trade, construction materials and the timber industry were the most active.