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Credit risks


Credit risk is the possibility that either one of the parties to a contract will not be able to satisfy its financial obligation under that contract. The classic example is that of one commercial enterprise extending credit to another enterprise or individual. Many insurance arrangements, especially finite risk programs, also involve varying degrees of credit risk—on both sides of the transaction—depending on the financial stability of the parties. 



Insurance of  non-payment risks by the contractual party (state or private entity)  

Addresses the risk of non-payment caused by a protracted default of the obligor, bankruptcy, civil war, riots, currency transfer limitations or inconvertibility.

The key point for investors and exporters is that the product allows for an easier access to the bank financing because it covers the risks which are often difficult for banks to manage. Fulfilment of the requirements guarantees the effective risk reduction according to Basel II. 


Investment risk (country risk)

Investment/country risk can be characterized by the term such as; confiscation, nationalization, deprivation, currency inconvertibility, war risk or any other political effect on trade or investment including the breaches of contracts by the host government. It concerns usually the projects in field of mining industry, infrastructure, energy industry, manufacturing, retailing and distribution.


Property risk (fixed assets)

Property risk of fixed assets can be insured in the same way as investment risk, or as a complement of the standard model- all risks.


Property risk (current assets)

Property risk of current assets encompasses mobile devices, equipment, machinery, means of transport, supplies of commodities and other mobile assets. It is used a similar coverage as in case of investment risk but with a specific adaptation related to a nature of the insured property.  


Risk of non-performance of contract (thwarted contract)

The insurance covers the situation, when the proper performance of the contract is thwarted by political risks. This product is often the part of coverage of credit risk.  


Bond risk 

An exporter or importer is obliged to provide an offer, advanced payment or guarantee. There is the risk that the recipient would not meet the conditions of the contract whether on its own or as a result of a political superior power. Banks issuing bonds may insist on proper coverage of credit risk of their clients.




Export credit insurance is an effective sales tool that enables you to extend competitive payment terms with confidence. It can help you penetrate new markets, negotiate larger order quantities, establish or expand distribution, and increase the profitability of your export business. If you finance your receivables, the coverage will also make your foreign A/R more attractive to banks, factors, and other lenders so you can negotiate the most favorable advance rates and loan terms.



Jun 18, 2020

Change of company address

Dear Business Partners,

we would like to inform you about a change concerning the registered address of our company London market.

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Feb 7, 2019

“How will your business change after Brexit“ seminar


On the 10th of January 2019, the British Chamber of Commerce, in cooperation with PwC, organized a seminar titled " How will your business change after Brexit?“  

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Jun 28, 2018

“How to succeed in International Trade today“ seminar

   Výsledek obrázku pro čsob

On 20 June 2018, CSOB organized a seminar titled "How to Succeed in International Trade today" for their clients and business partners. 

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Apr 17, 2018

Round Table with CNB Governor Jiří Rusnok


On 11 April 2018, the British Chamber of Commerce, in cooperation with London Market, organized a roundtable with CNB Governor Jiří Rusnok.

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Nov 24, 2017

Conference on “UK 4th biggest trading partner of the Czech Republic “

Company London Market organised International Export conference within Brno International Fair „UK 4th biggest trading partner of the Czech Republic “

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