F13 - Trade Policy; International Trade OrganizationsReturn

Today, insurance companies are looking for new approaches to risk insurance so that the risk remains insurable and at the same time does not endanger the existence of the insurance company itself. Every risk must be evaluated by the insurance company as best as possible. Insurance companies have their own methodologies for assessing international risks, which show differences. Each insurance company tries to ascertain the most accurate quantitative and qualitative data in order to analyse the potential risk in depth. Evaluation is the basis for setting prices, country risk limits and, if necessary, has an impact on the specific definition of risk acceptance conditions. The aim of the article is to analyse and evaluate the methods and approaches of insurance companies on the basis of data obtained from databases of OECD and selected credit insurance companies. Further assess from the perspective of the exporter whether these methods are important in his deciding during the implementation of a specific business case. The result is the finding that the risk evaluations of insurance companies are beneficial for the exporter in terms of assessing the planned intention to export to the territory.

As a rule, we identify four reasons for which companies seek to be engaged in international trade. Firstly, there are limits to the increase in the turnover within a national market due to limited number of customers, their purchasing power, competition and quality of production or services. Secondly, it is outsourcing, when a company capitalizes on the comparative advantages of national economies. Thirdly, we talk about diversification of sales when operators try to eliminate volatility in the turnover by better timing the sale of its products going beyond national markets. Finally, the competitive risk reduction by using comparative advantage to strengthen the economic position of the company that is able to go international to compensate for loss of profits at home, so that it can remain competitive both in domestic and foreign markets. Before real courses of actions are taken, the incentives are to be subjected to validation in terms of the validation criteriae as outlined in the final part of the article.