Foreign Credit Insurance Association
What Does Foreign Credit Insurance Association Mean?
The Foreign Credit Insurance Association (FCIA) is a United States agency established in 1961 by a group of insurance companies. It provides insurance to businesses that export goods, covering both financial and political risks associated with international trade.
Insuranceopedia Explains Foreign Credit Insurance Association
In 1961, 50 American insurance companies established the FCIA, which is sponsored by the Export-Import Bank of the United States, the official export credit agency of the country. The FCIA is responsible for providing insurance for exporting companies.
The FCIA covers financial risks that arise when a company requires financial rehabilitation through insurance funds if its client fails to meet obligations due to economic factors such as bankruptcy.
Additionally, the FCIA addresses political risks, which occur when a client’s country experiences turmoil, such as war, rendering them unable to fulfill their payment obligations to the exporting company.
