Single Frame: political and credit risk insurance for ongoing transactions

Single Frame insurance covers political and commercial risks (i.e. non-payment of receivables) in the context of performing and securing ongoing transactions irrevocably over a maximum period of 5 years. 

Clients who take out this form of insurance include exporters, importers and investors or companies that want to finance projects that are exposed to manifold threats such as non-payment of receivables, insolvency and non-transfer, non-payment of rent, contract interruption, and improper recourse to bonds.

Coface’s Single Frame includes a dedicated, simplified architecture for effective management of the different risks.

Political risk refers to a change that may have a substantial impact on the interests of a company, financial institution, bank or investor, and includes conflict, riots, civil war, etc. It may also take the form of a political decision: blocking the transfer of assets, confiscation, the unilateral refusal of the authorities to comply with their obligations, an embargo, nationalisation, expropriation, etc.

Political risk is a fundamental part of project risk, especially for large-scale industrial projects in unstable regions, emerging countries or detiorating security environments.

This explains why companies need Single Risk or Single Frame insurance: it indemnifies them in the event of non-payment, wrongful termination of contract, non-delivery of goods, confiscation of assets, non-transfer of dividends, non-reimbursement of loan maturities, licence cancellation, etc.