Geopolitical Tensions Threaten Exports: The Rising Importance of Insurance and Guarantees

Global Trade Challenges Amid Rising Geopolitical Risks

The current global trade landscape is facing significant challenges due to escalating geopolitical tensions and changing trade policies in various countries. Emerging markets are expected to become the new growth drivers amidst these challenges. The uncertainty surrounding international trade has made risk mitigation strategies more critical than ever for businesses looking to expand their global footprint.

Insurance and Guarantee Products: Crucial Risk Mitigation Tools

In this complex environment, insurance and guarantee products have emerged as essential tools for mitigating risks associated with international trade. These financial instruments provide businesses with the necessary security to enter new markets, participate in international tenders, and reduce payment risks. According to Herry Hykmanto, Chairman of ICC Banking Commission Indonesia, "Penjaminan dan asuransi memungkinkan pelaku usaha memasuki pasar baru, mengikuti tender internasional, dan mengurangi risiko pembayaran."

Supporting Business Expansion and Financial Access

The selection of appropriate risk mitigation instruments is becoming increasingly important to support the market expansion of exporters and improve their access to banking financing. As global trade continues to face headwinds from geopolitical uncertainties, the role of insurance and guarantee products is likely to become even more significant in the coming years.