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Premiums and fees

What fees and premiums incurred to an Export Credit Guarantee

How much does Hermes Cover cost?

Please find out how much the cover for your business is likely to cost.

Here, we will provide you with important information and guidance so that you can assess the costs of cover for your export transaction. These consist of fees and premiums.

If you have any further questions, please do not hesitate to contact us – our business consultants will be pleased to answer them.



The fees are charged for the costs associated with the processing of an application and normally depend on the volume of the transaction to be covered, i.e. the contract value and/or the loan amount. Among other things, they include, for example, the application fee, which will be charged once if you make an application.



As matter of principle, premiums are risk-based and account for the major part of the costs. When the premium is calculated, the horizon of risk, the country and the buyer risk but also your share in the risk (uninsured percentage) and any collateral that may exist are taken into account. Consequently, lower risks result in lower costs than high risks.


Horizon of risk

The horizon of risk is the period of time during which the Federal Government carries a risk. It depends on the type of cover, the repayment term and the terms of payment.


Country risk

The country risk is assessed for each country once a year on OECD level. Using a macro-economic model the states are classified in one of eight risk categories. These country risk classifications are binding on all OECD member states. Under this system countries in Risk Category 1 involve a low risk and countries with a particularly high risk are classified in Risk Category 7. The calculation for countries that are not classified is based on a market test. For this, an up-to-date calculation tool (Prevailing Calculator for Market Benchmark MPR) as well as guidance is available on the OECD website. You can find the currently applicable country risk categories on the pages informing about the country cover policy.


Buyer risk (counterparty risk)

The buyer risk indicates the probability of a payment default of the foreign buyer. On the basis of various parameters and documents the buyer’s creditworthiness is assessed. As a result, the buyer is classified within a scale of categories. If the buyer concerned is a public buyer/debtor/guarantor, he will be classified in the buyer risk category SOV (ministry of finance, central bank) or SOV- (other state organisations). Private buyers/debtors/guarantors are classified in the buyer risk categories CC0 to CC5. Here, the company-specific risks as well as the risks resulting from the structure of the export transaction (e.g. collateral) are taken into account.



Collateral security, such as e.g. liens, is another important aspect in the risk assessment. The provision of collateral security may result in a reduction of the premium amount payable.


Uninsured percentage of the risk

With every type of cover you, as policyholder, retain a small portion of the risk for your own account (uninsured percentage). In this context the Federal Government stipulates that you are not allowed to insure this remaining risk elsewhere. The uninsured percentage – a difference is made here between political risks and commercial risks – usually ranges from 5% to 15% depending on the type of cover. In some cases you can apply for a lower uninsured percentage in connection with commercial risks. In such a case, a surcharge on the premium will be payable.


Find out more details

The rates for fees and premiums can be found in the brochure “Fees and premium rates”.

In the series 'Hermes Cover Special' a brochure (PDF) with more detailed information on the calculation of the premiums has been published. Additional information can also be found at the FAQs.

You will find additional information and forms in the section below.  Besides, a tool for the premium calculation (xlsx, German version only) is available for download. It enables you to determine the premium rate based on country and buyer risk categories and the horizon of risk. In addition, it is possible to take separate premium discounts for the provision of collateral security in connection with certain forms of cover into account.

The Premium Calculator offers export companies and their foreign customers an initial indication based on four questions - in less than a minute!

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