How much does export credit insurance cost?

Export credit insurance is usually cheaper than you think.

An average policy, insuring turnover of NZD$5m a year, starts from NZD$15,000 in annual premiums. That equates to just NZD$0.30 for every NZD$100 invoiced. However some policies will cost less and some will cost more, with the final premium being dictated by the level of risk and the amount to be insured. No two policies will be exactly the same, as the perception of risk will vary according to individual customer, geographical, environmental and political situations, all of which can fluctuate and change over time.

Calculating the cost of export credit insurance

Calculating the cost of export credit insurance can be complex as so many variables are applicable. These usually include:

  • Your customer’s trading behaviour, including the trading history they have with you and with other businesses – have they failed to pay invoices in the past?
  • Sector stability – are supply chains secure, are technological developments causing disruption with new competitors or products?
  • Customer location – is their environment risky, for example is there a high incidence of flooding, volcanic activity or earthquakes where they are located?
  • Political risk – is there a high risk of political instability in your customer’s location, including war, coup, terrorism or even the threat of cripplingly high tariffs?
  • Is the sale particularly complex, for example does it involve a long project that may cover several years or involved several buyers?

What equation do credit insurance firms use to calculate policy cost?

Most export credit insurance firms will calculate the cost of export insurance based on a percentage of turnover combined with the level of risk. At Atradius the cost of export credit insurance is typically 0.5% of turnover depending on the risk profile and the spread of risk. This means that smaller businesses trading with lower risk will pay less than businesses that require cover for bigger sales carrying higher risk. Each policy will typically cover a client’s entire client base and premiums are charged annually in advance.

Related content

Can I insure my export credit?

You can insure your export credit. Also called credit insurance, or trade credit insurance, the cover protects your accounts receivable from the risk of non-payment.

Advantages and disadvantages of export credit insurance

When it comes to export trade credit insurance, the advantages of having a policy far outweigh the disadvantages.


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.