Podcast: BPL Global on the impact of Covid-19 on CPRI
TXF spoke with James Esdaile, managing director at BPL Global, to discuss the significant exposure private insurers have to credit and political risk insurance (CPRI) amid the Covid-19 crisis. As ECAs gear up to further support exporting companies, what role will the private insurance sector play in export finance? Will the pandemic change the dynamic of the CPRI market? And how will the private sector look in the wake of coronavirus?
With supply chains interrupted, record low oil and gas prices, and many large-sale projects under construction held up or halted globally, the Covid-19 crisis is causing significant disruption to global trade and project finance. But, for now, the credit and private risk insurance (CPRI) sector believes it is well placed to deal with the immediate disruption and impact.
Lessons learned from the global financial crisis of 2008/2009 and the strength and depth of the private sector now, both in appetite and capacity, provide global trade with a wealth of support. What can we expect the relationship to look like between the private insurance sector and the ECAs through the pandemic? And what support will be available from governments if it is needed?