Rating and Pricing MLT Commercial Risks Meeting

The 5th Berne Union Rating & Pricing Meeting will be held in Helsinki from 30 November to 1 December, with the welcome reception on 29 November at the Clarion Hotel. 

The meeting will focus on exchange of expertise and actual underwriting and risk assessment. More information about the content and intended case studies will follow in due course.

2022 Members of the Steering Committee

•   FINNVERA: Tuukka Andersén, Juhani Häyrinen, Matti Airaksinen, Pekka Karkovirta, Jarkko Haapiainen
•    SACE: Vincenzo Abbate, Chiara Maruccio, Marcello Romei Bulgiari
•    SERV: Aurelio Caliaro

•  BU SECRETARIAT: Didem Bayseferogullari and Arturs Karlsons

OBJECTIVE

The objective of this Specialist Meeting will be for participants to better understand how export credit agency (ECA) colleagues in various public institutions rate (classify) and price medium long term (MLT) commercial risks, through general and breakout discussions. This includes explanation of external ratings, comparison of institutional practices and discussion on different aspect of the process. At this meeting, ESG elements will also be considered as evaluation elements in rating and pricing case studies.

FORMAT

This Specialist Meeting will mix both large group sessions and peer-to-peer small group discussions, where the sharing of experiences on what factors are key to ratings and how the aggregate of these factors drives pricing methods will be encouraged.

Please note that pre-meeting reading as well as case study homework and submissions will be required in advance of the meeting. As part of that, participants are required to analyse, rate and price the cases, either themselves or with the help of their colleagues in their respective ECA. This homework will take place and be submitted in advance of the meeting, with an aim to gather the view of how different ECAs would assess and price the different cases. These cases and the associated rating and pricing will then be discussed in depth in small peer-to-peer groups in Helsinki. The due date to submit the advanced homework is early November 2022.

At the meeting, the number of group presentations or lectures will be limited in order to allow a maximum amount of time for interactive peer-to-peer work. This work will deepen the understanding of participants on how colleagues in other ECAs facing the same application would apply risk classification and pricing considerations. The result should help identify best practices and help bridging gap in pricing of comparable risks.

WHO SHOULD ATTEND?

This Specialist Meeting, the fifth of its kind, will continue the detailed discussion on rating and pricing practices, therefore it is strongly suggested that participants with sufficient, tangible, operational experience attend. This may include candidates such as:

  • Heads of MLT Underwriting, Credit Risk Analysis and/or Risk Management
  • Underwriters
  • Pricing Specialists

As the peer-to-peer small group discussions are to an extent training in nature, colleagues with lesser operational experience but with the ability and willingness to actively take part in the discussions, are still encouraged to participate.

Please note that direct lending practices will not be specifically addressed within the agenda but the opportunity to network with colleagues from ECAs with direct lending arms will be facilitated.