Insurance of Investment and Export Credit

The IDB Group is a pioneer in the field of Sharia-compliant credit and political risk insurance and reinsurance.

The IDB Group is a pioneer in the field of Sharia-compliant credit and political risk insurance and reinsurance. Aiming at increasing the scope of trade transactions of its member countries and facilitating Foreign Direct Investments (FDI) into the same countries, the IDB Group provides appropriate Islamic Sharia-compatible credit and country risk insurance and reinsurance instruments.

The products and services provided include:

Trade Credit Insurance

Short-term Business

For banks providing financing facilities through Murabahah, Ijarah, Istisna’ or any other Islamic mode of finance, the IDB Group can insure the credit risk of the obligor or its guarantor helping the bank to mitigate the risks and increase its asset size and improve its asset quality.

For banks and financial institutions confirming Letters of Credit (L/C) and want to increase the volume of business, the IDB Group can share the credit risk of the issuing bank so that banks and financial institutions can build capacity for more L/C business and help their clients increase their exports.

For trading institutions who’s exports are paid for by Letters of Credit or/and sold on open account terms, the IDB Group enables trading institutions to offer their overseas customers more flexible payment options – without exposing their business to non-payment and political risks. The IDB Group insurance also allows trading institutions to obtain Export Credit finance from banks.

Services:

  • Bank Master Policy (BMP)
  • Documentary Credit Insurance Policy (DCIP)
  • Specific Transaction Policy (STP)
  • Comprehensive Short–Term Policy (CSTP)

Medium-term Business

For clients executing contracts abroad, the IDB Group enhances their confidence to deal with new customers, penetrate new markets, and bid on large contracts by providing cover of up to 90% of eligible losses resulting from political and commercial risks while clients give their overseas clients more flexible payment terms.

Services:

  • Specific Transaction Policy (Contract Frustration)

Foreign Investment Insurance

For investors who are concerned about non-commercial risks such as “country/political risk” in the host countries. The political risk insurance helps potential investors mitigate these risks, and support their cross-border investments.

Services: 

  • Foreign Investment Insurance Policy (FIIP) for Equity
  • Foreign Investment Insurance Policy (FIIP) for Financing Facility
  • Non-Honoring of Sovereign Financial Obligation Policy

Export Credit Agencies (ECAs) /Reinsurance

Export credit agencies (ECAs) are specialized government institutions created to support export growth.  In some countries, the ECAs provide insurance and financing support. The IDB Group provides reinsurance support to ECAs either in its member countries or elsewhere.

Services: 

  • Quota Share Treaty (QST)
  • Excess of Loss
  • Reinsurance of Domestic Business
  • Reinsurance Facultative Agreement (RFA)
  • Technical Assistance to Export Credit Agencies of Member Countries

35C, Office 8, LOT 28 SCBD
Jl. Jend. Sudirman Kav. 52/53
Senopati, Jakarta - Indonesia 12190
T: +62 21 2933 3468, F: +62 21 2933 3464,
E: cgoindonesia@isdb.org

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© Islamic Development Bank - Country Gateway Office Indonesia 2015-2017