Individual Top Up Policy

The current financial crisis has led to a significant change in behavior of the private credit insurers. Indeed, they are confronted to more important compensation requests than in the past which leads them to be more cautious in granting limits than they had been in the past.


In January 2009, the Luxembourg Government has notified the European Commission of a new instrument designed to reduce failures in the private credit insurance market.


This system either applies in addition to the export credit insurance purchased at a private insurer or replaces the private credit insurer if the latter refuses coverage to private enterprise due of its sectoral affiliation or its size.


The Government has instructed the Secretariat of the Office du Ducroire with the daily management of the Individual Top Up Insurance. The insurance covers major losses incurred as a result of the bankruptcy of their debtors or a default of payments of the customer, resulting from the supply of goods or services accomplished in addition to the credit limit granted by the basic credit insurer.


Operating Principle


In principle, the proposed coverage is only possible if the company holds a private credit insurance policy. In case a company was not insured before 01 September 2008 and was denied access to private credit insurance, then Ducroire would individually examine the file and request the company to provide proof that all necessary steps to obtain coverage from different credit insurers have been made. An individual decision will be made based on the turnover experience of the Luxembourg company in respect of their client’s company, the payment experience of this company, information on the decision of the private credit insurer and any other information deemed necessary by Ducroire.


The percentage of coverage is the one foreseen and applied by the basic credit insurer for the calculation of its compensation. As for companies without private credit insurance policy, the percentage of coverage is limited to 80%. The insured sum per debtor equals the amount of the credit limit in addition to that laid down by the basic credit insurer. The premium amounts to triple of the basic insurance’s premium for the covered amount with a minimum of 1% per quarter for presumed and declared insolvency and 0.375% per quarter for declared insolvency.


In case of a loss, the Luxembourg Government will only interfere after intervention of the basic credit insurer. The private insurer will cover the first losses up to the credit limit insured by him. Only the losses exceeding this limit will be covered by the State up to the credit limit provided under the Individual Top Up insurance.


The Ducroire can assign an insurance coverage under the notified measure up to the end of 2011.
The individual top up policy has been reactivated for Greece on June 1st, 2012 (
Government's decision dated June 1st, 2012 + Amendment to the Short-term Communication dated April 20th, 2012).

Photo - Assurance-Crédit