PROFIT REINSURANCE – RISKS AND EFFECTS

Abstract

Each country is preoccupied to increase the efforts in order to ensure the currency necessary to pay the goods from import which it needs for the production, consumption, investment. The goods of the assets type are gradually delivered on component parts as they are manufactured and as the investment progresses, are incorporated by the purchaser. Under these circumstances, it appears the need to echelon the payments for the supplies of importer in the time. The financial problems are also for the economic agents who are supplying from import. Importers need a reprieve until they get the currency resources necessary to pay the imports. If the payment is to be made within a short time, the supplier gives a commercial credit to the customer. The performance of the export by credit involves resources for the exporter for the financing bank. The scope of the credit insurance is to protect against the financial losses resulted from non-payment, inability to pay or insolvency of buyers that paid the goods on credit or from the insolvency of the credit beneficiaries. Through credit insurance policies, there are protected the cashing from the commercial activity in the circumstances of transferring the risk of not cashing on insurer and as a consequence, the turnover can increase.

Keywords

• risk
• insurance
• financial results
• companies