Premium rate

Premium rate is negotiated under the specific terms of the contract. This premium rate is applied to the insured’s turnover.
The premium rate can be lowered by changing certain conditions of the contract:
– setting up a franchise,
– decrease in the percentage of coverage,
– reduction of the risk period.

In addition, the premium rate may vary over time. Generally, this rate is favourable at the beginning of the contract but it can be increased if the loss experience increases too much in relation to the premium paid.

Calculation of the credit insurance premium
The credit insurance premium is calculated as a percentage of your insured turnover.
This rate can vary between 0.05% and 1.5% depending on several parameters:
– area of activity and country,
– the amount to be insured
– country ranking,
– average maturity and payment terms,
– nature of the risk covered,
– quality of insured customers,
– type of customers,
– number of customers
– countries to be insured
– quality of the debtor,
– history of your claims experience,
– balance sheet analyses,
– claims statistics
– sector
– bank information.

Good to know: there is a minimum annual premium for each contract. This limit corresponds to approximately 70% of the calculated annual premium.