Short-term claims paid by export credit insurers increased to higher-than-expected levels in 2012, according to the Berne Union. (The leading global organisation for the export credit and investment insurance industry insuring more than 10% of global trade in 2012.)

Claims paid by the association's members in short-term business rose by 58%, from US$1.3bn in 2012 to US$2.1bn in 2012. This is below 2009's US$2.4bn, but still reflects the continuing volatility in which insurers operate, especially in the eurozone.

The highest volumes of short-term claims were found in Italy (US$235mn), the US (US$172mn), the UK (US$134mn), Germany (US$133mn) and Spain (US$114mn) – countries where Berne Union members have the highest exposures. Overall (short, medium and long-term) claims paid by insurers reached US$4.7bn.

The association points out that the short-term loss ratio for insurers, taking into account claims paid in relation to premium income, will be higher in 2012 than in 2011, not only because of higher claims, but also due to strong competition pushing premiums down.

Fabrice Morel, Berne Union deputy secretary general, believes that, "Given the political and economic uncertainties in the global environment, coupled with an enormous demand from emerging markets for capital goods fuelled by projects in the infrastructure, energy, and natural resources sectors, the support of ECAs appears to be more than ever crucial for helping banks and exporters to trade internationally."

However, surely soon credit insurance premiums can only go up??