Insurance firms under scrutiny for fueling business crisis, alleges BGA president

In a recent statement made to the Funke media group's newspapers, Anton Böerner, the new president of the Federal Association of Wholesale, Foreign Trade and Services (BGA), has criticized credit insurers for their actions towards businesses during the coronavirus crisis.

Böerner compared the actions of credit insurers to "kicking businesses in the shins" and putting the existence of companies at risk. He specifically criticized credit insurers Atradius, Euler Hermes, and Coface, which received guarantees from the German government for countries including China, India, Brazil, South Africa, and Russia.

The problems with credit insurers, as discussed by Böerner, involve both reducing limits for companies and significantly increasing premiums. This, he believes, is unnecessary and potentially harmful to businesses that are already struggling due to the economic impact of the coronavirus crisis.

It is not entirely clear from the statement whether the analysts of credit insurers predict negative developments in the economic situation. However, it is known that they do predict such developments. The federal government has provided guarantees to credit insurers, but the role of the government in this matter is not further elaborated upon in the statement.

Böerner's comments come at a time when companies are facing significant challenges due to the coronavirus crisis. Many are struggling to keep their businesses afloat, and any additional burden, such as reduced credit limits or increased premiums, could tip the balance and lead to their collapse.

The economic situation is predicted to have negative developments by credit insurers' analysts, and Böerner's criticism of the credit insurers' actions may add to the uncertainty and instability that businesses are currently experiencing. However, his comments serve as a call to action for credit insurers to reconsider their business practices during this critical time.

Insurance firms under scrutiny for fueling business crisis, alleges BGA president