Notes on the Background of Credit Insurance and Surety

Notes on the Background of Credit Insurance and Surety

The first credit insurance book places in 1820 principally offer fire and life insurance by British Commercial Insurance Company. The surety market started in 1894 in USA which required the purchase of surety bonds on construction projects. The credit insurance and surety could not develop much.

Credit insurance policies have covered commercial risks with the experience of last years. It has developed gradually since last 15 years. The political risks are covered only in combination of commercial risks coverage.

Short term credit covered provide for consumer goods, spare parts and raw materials. Medium term credit covers capital goods. Credit insurance is being helped.

The premium volume of credit insurance has increased from $ 4340 million in 1998 to $ 6591 million in 2004. Western Europe constitutes more than 70 per cent of share premium. 0.016 per cent of GDP is collected as premium credit insurance worldwide.

The Surety ship premium has increased from $ 5391 million in 1998 to $ 7644 million in 2004.0.019 per cent of GDP is collected as premiums for surety ship.