Figures compiled by ICIC, the Israeli Credit Insurance Company, indicate a sharp rise in demand for credit insurance by Israeli companies that exported to the Far East in 2006, compared to 2005, and that the increased demand for credit insurance exceeded the increase in exports in 2006.
Credit insurance guarantees that the Israeli exporter will receive his money, even if the client fails to pay due to economic difficulties or a political event that prevents him from transferring money out of his country.
ICIC’s figures show that the greatest increase in demand for credit insurance was for exports to Malaysia (300%), followed by Singapore (215%), China (100%), Taiwan (91%) and Japan (16%). Of all the Far Eastern countries, only exports to India experienced a temporary decline in demand for credit insurance.