Cap Francexport
Promote and secure short-term exports from French companies
Short-Term Reinsurance Device
Our Cap Francexport Short Term Reinsurance Scheme
Context
Cap Francexport is a short-term reinsurance system between Bpifrance Assurance Export and private credit insurers.
It allows for the granting of state support, as needed, to short-term operations by French companies in addition to private market coverage. Eligibility for the scheme is limited to operations in countries at risk that are deemed transferable (as defined by European Union regulations) or temporarily non-transferable, as may be decided by the European Commission.
Point of attention
Initiated in 2009 as a countercyclical tool in the context of the financial crisis and reactivated in 2019 to respond to the consequences of Covid on the private short-term credit insurance sector, the Cap Francexport system is now permanent to help French exporters find credit insurance coverage to countries in the event of a partial or total withdrawal from the private market.
Unless expressly agreed by the European Commission, transferable risks (namely: member countries of the European Union, Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland, the United Kingdom and the United States) are excluded from the system.
Eligible beneficiaries
French exporting companies facing reductions or reductions in guarantees for operations to countries at risk deemed non-transferable.
Two types of guarantees are possible
- La Cap Francexport Guarantee (Supplementary guarantee) in the event that the credit insurer wishes to partially withdraw from an operation, the State may reinsure up to double the so-called "primary" guarantee, which is the guarantee issued by the private credit insurer. This means that the State assumes up to 2/3 of the risks of the operation. The insured company benefits from the guaranteed portion set by the private credit insurer under the primary guarantee, which can reach 90%. The guarantee is granted in accordance with the arbitration made by the private credit insurer on its primary guarantee.
- La Cap Francexport Guarantee + (“Full” guarantee): in the event that the private credit insurer wishes to withdraw completely from a transaction, the State may fully reinsure the private insurer, with the exception of a minimal residual portion which remains the responsibility of the private credit insurers (5%). The insured company benefits from a guaranteed portion of 80%. The guarantee is granted after arbitration by the private insurer, with ceilings depending on the risk category (€500 for a buyer with an average risk and €000 for a buyer with a higher risk with the possibility of obtaining exemptions).
The characteristics of the CT Cap Francexport reinsurance system
Submission of the request
Applications for Cap Francexport coverage should be submitted to your participating private credit insurers:
- atradius : capfrancexport@atradius.com
- Axa: drc@assurcredit.com
- Coface: src@coface.com
- Euler Hermes: acceuiletservices@eulerhermes.fr
- Groupama: capfrancexport@groupama-ac.fr
All commercial and contractual relationships under Cap Francexport (guarantee delivery, premium payment, compensation, etc.) are managed by these participating private credit insurers. The benefit of the Cap Francexport guarantee is contractually agreed upon through an amendment or the issuance of a CAP policy between the insured and the participating credit insurer concerned.
This amendment or CAP policy will include in particular the conditions of eligibility for the system (for example the definition and minimum French share required) and the coverage terms (for example the premium).