BGA President Accuses Credit Insurers for Instigating Crisis in Business Policies
In the midst of the ongoing coronavirus pandemic, the Federal Association of Wholesale, Foreign Trade and Services (BGA) has voiced concerns about the actions of credit insurers. The BGA, led by its new president Anton Börner, believes that these actions are negatively affecting the economic situation.
Credit insurers, despite receiving guarantees from the state, are reportedly causing problems for the economy. They are increasing premiums and reducing limits for businesses, putting the existence of companies at risk. This tightening of coverage and hike in premiums is due to predicted negative developments in the economic situation.
According to Anton Börner, the actions of credit insurers during the crisis are putting the existence of companies at risk. He has expressed his complaints about these practices to the Funke media group's newspapers, but the BGA has not shared any new emails or communications regarding this issue.
The government guarantees during the COVID-19 crisis act as partial risk mitigants but do not eliminate credit risk entirely. Insurers must price their products to reflect the increased uncertainty and potential for non-payment from businesses facing economic disruption, even with some government support. This means insurers often impose stricter limits and charge higher premiums to compensate for the residual risk they bear.
While the focus has been mainly on healthcare premiums and coverage changes post-pandemic, there has been little discussion about credit insurance premium adjustments linked to government guarantees in the COVID crisis. However, this is consistent with established insurance principles: partial guarantees reduce but do not eliminate risk exposure, prompting insurers to counterbalance remaining uncertainties by raising premiums and limiting coverage capacity.
The BGA has not specified any new companies currently facing problems with credit insurers. Despite this, the economic situation is being negatively affected by the actions of credit insurers, according to both the BGA and Anton Börner.
The federal government has provided guarantees to credit insurers, aiming to support businesses during these challenging times. However, the actions of these insurers remain a cause for concern, with the BGA and Anton Börner calling for a closer look at their business practices during the crisis.
The federal government's guarantees to credit insurers are meant to support businesses, but the BGA and Anton Börner are concerned about their actions causing problems for the economy. Insurers are increasing premiums and reducing limits for businesses, which is negatively influencing the economic situation, as stated by the BGA and Anton Börner.
