A presentation on

COMPARITIVE STUDY OF ecgc

AND ITS COMPETITORS
& SWOT ANALYSIS

PRESENTED BY:ASMA KHAN

Introduction:In an export trade, exporters needs the finance

at different stages. The finance is required for
processing,
manufacturing,
assembling,
procuring and packing the goods for export in
the pre-shipment stages & During the
intervening period between the shipment of
goods and the receipt of payment post-shipment
credit is required by the exporters at post
shipment stages.

Need of export credit insurance:The export credit plays a very important role in
the International trade system. In developed and
developing countries, it has been a tool for
pushing exports of manufactured and capital
goods, as well as some specific services. Due to
higher risk in International market, credit
insurance becomes important. Export credit
insurance protects exporters against the risk of
non-payments by the foreign buyers.

LIST OF THE MAJOR COMPANIES PROVIDING EXPORT CREDIT

INSURANCE:-

Public sector:
i.) ECGC
ii.) New India Assurance
iii.) SBI general insurance
Private sector:
i.) ICICI Lombard
ii.) IFFCO-Tokio

INTRODUCTION OF EXPORT CREDIT

GUARANTEE CORPORATION:ECGC ( Export Credit Guarantee Corporation) of
India Ltd, was established in July, 1957. It
functions under the administrative control of the
Ministry of Commerce & Industry and
Government of India. It is managed by a
Board of Directors comprising representatives
of the Government, Reserve Bank of India. Its
headquarter is in Mumbai, Maharashtra.

Objectives:To promote export mainly by

i.) Protecting Exporters against COMMERCIAL &
POLITICAL RISKS in export proceeds
ii.) Protecting Banks against RISK OF DEFAULT in
export credit.
iii.) To facilitate availability of adequate bank finance to
the Indian exporters by providing insurance cover for
banker in the form of guarantee at competitive rate.

COMPETITORS OF ECGC:In the Indian market the competitors of ECGC are

PUBLIC SECTOR:i.) New India Assurance
ii.) SBI General Insurance

PRIVATE SECTOR:i.) ICICI Lombard

ii.) IFFCO-Tokyo

Comparison through different parameters:i.)Risk coverage by companies

ii.)Risk exemptions
iii.)Transactions modes
iv.)Countries coverage
v.)Exporters Reach
vi.)Claims
vii.)Bank loan assistance to exporters
viii.)Premium Calculation

1. RISKS COVERAGE

Basis of
difference

SBIGENERAL

ICICILombard

IFFCOTOKIO

New India
Assurance

COVERED

COVERED

COVERED

COVERED

NonCOVERED
payment due
to war

COVERED

COVERED

COVERED

COVERED

Cancellation
of import
license

COVERED

COVERED

COVERED

COVERED

COVERED

Delay in
payment

COVERED

NOT
COVERED

NOT
COVERED

COVERED

COVERED

Diversion of
Voyage

COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

Natural
disaster

NOT
COVERED

NOT
COVERED

NOT
COVERED

COVERED

NOT
COVERED

Restriction
by Govt.

ECGC

COVERED

2.RISK EXCLUSION

Basis of
difference

ECGC

SBI
General

ICICILombard

IFFCOTokio

New India
Assurance

Exchange rate NOT

COVERED
fluctuation

NOT
COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

Loss of goods

NOT
COVERED

COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

Trade dispute

NOTCOVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

Default and
insolvency

COVERED

COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

Delay in
payment

COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

Non
payment

NOT
COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

NOT
COVERED

Non-

COVERED

NOT

NOT

NOT

NOT

3.MODES OF PAYMENTS

Types of
Payments

ECGC

SBIGeneral
Insurance

ICICILombard

IFFCOTokio

New India
Assurance

Letter of
Credit

COVERED

COVERED

COVERED

COVERED

COVERED

Document
against
Payment

COVERED

NOTCOVERED

NOTCOVERED

NOTCOVERED

NOTCOVERED

Open
Delivery

COVERED

NOTCOVERED

NOTCOVERED

NOTCOVERED

NOTCOVERED

Document
against
Acceptance

COVERED

NOTCOVERED

NOTCOVERED

NOTCOVERED

NOTCOVERED

4.COUNTRIES COVERAGE

ICICI-Lombard

SBI-General
Insurance

New India
Assurance

Egypt

Iran

Iceland

Jordan

Cuba

Tunisia

Libya

Pakistan

Yemen

Iraq

Fiji

Sudan

Sudan

IFFCO-Tokio

--------------

--------------

---------------

---------------

---------------

----------------

5.COVERAGE

COMPANY

COVERAGE

ECGC

80%-90 %

New India Assurance

85 %

IFFCO-TOKIO

90 %

ICICI-Lombard

90 %

SBI General insurance

N.A

6.PREMIUM CALCULATION

ECGC

SBI-General
Insurance

ICICILombard

IFFCO-Tokio New India

Assurance

Country basis

Turnover

Country basis

Country basis

On the basis of
Term of
Payment

Turnover

Country basis

Re-insurance
quote &
support

Bank assistance:ECGC provides export credit insurance covers

to the banks and financial institutions to enables
the exporters to obtain better facilities from
them i.e. from banks which is formally known as
guarantee.
No other competitor of the ECGC
provides export credit insurance cover to the
banks.

SWOT Analysis:SWOT analysis of ECGC is as under :

i.) Strength :a.) Maximum country coverage.
b.) Maximum coverage from risk.
ii.) Weakness:a.) Communication gap
iii.) Opportunities:a.) In the sector of factoring
iv.) Threats:a.) Weakness will become threat.

THANK
YOU..!