Export credit insurance in Switzerland provides protection to Swiss exporters against non-payment by foreign buyers. This insurance mitigates risks associated with international trade, such as political instability, currency fluctuations, and buyer insolvency. A typical scenario involves a Swiss company shipping goods to a client abroad; if the client defaults on payment due to unforeseen circumstances, the insurance policy covers a significant portion of the loss.
The existence of such a mechanism facilitates and encourages international trade by reducing financial uncertainties for Swiss businesses. It enables them to enter new markets and expand their export activities with greater confidence. Historically, this type of support has played a vital role in promoting economic growth and diversification, allowing smaller and medium-sized enterprises to compete effectively on a global scale.