covid-19

ICIEC COVID-19

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Message From CEO

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Message From CEO

ICIEC and IsDB Response

Learn about the IsDB Group’s ‘Strategic Preparedness and Response Program’ and ICIEC’s contribution to sustaining trade and investment during the crisis.

Our Solutions

Offering products for financial institutions, ECA’s and business, we are the only Shariah compliant multilateral insurance provider of credit risk insurance and reinsurance. Learn more about how our products and solutions support trade and investment.

Demonstrating our impact

ICIEC is more committed than ever to implementing strategies that empower strategic and sustainable development. Learn more and see examples of our development impact.

Resources for more information

Knowledge is power. Learn about how IsDB partners and others are responding to the crisis.

Official Message from the CEO on COVID-19

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ICIEC Response Fact Sheet

IsDB Group fully recognizes the limited ability and capacity of its Member Countries to cope with the adverse impacts of COVID-19 and assures them of the Group’s full and unwavering support to get through the crisis together and build back for a better tomorrow.

ICIEC has developed partnership initiatives with IsDB Group Entities to better serve Member Countries and support their recovery from the negative impact of COVID-19. To do so,

ICIEC is providing credit and political risk insurance to:

Sustain imports of strategic commodities.

Protect investments.

Minimize volatility.

Responding as a member of IsDB Group

The IsDB COVID-19 Response “3 Rs”:

IsDB has established a response plan to cover 3 phases of recovery for the short-term, medium-term, and long-term.

R1

Respond: Deliver immediate action through South-South and North-South reverse linkage operations focused on a) strengthening health systems to provide care to the infected; b) building production capacity of testing kits and vaccines; and c) building Pandemic Preparedness capacity in cooperation with G20 Global Initiative.

R2

Restore: Deliver medium term action through financing for trade and SMEs to sustain activity in core strategic value chains, and to ensure continuity of the necessary supplies mainly to the health and food sectors, and for other essential commodities.

R3

Restart: Deliver long-term action to build resilient economies on solid foundations and catalyze private investment by supporting economic recovery and countercyclical spending, with a targeted US $10 billion that aims to unlock $1 trillion USD worth of investments.

US $280 million
for sovereign projects and programs

US $605 million
for trade finance

US $1,414 million
for insurance coverage

US $250 million
for private sector projects finance

Support has been extended in the form of:


Grants

Concessional financing

Trade finance

Private sector financing

Political and credit risk insurance coverage


The IsDB Group has deployed all available financing instruments to channel the funds in a fast track manner to support member countries.

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The program supports:
  • Strengthening of health systems.
  • Funding of national epidemic preparedness and response plans.
  • Community awareness and education.
  • Disease surveillance.
  • Data collection and analysis.
  • Sustained provision of essential social services.
  • Provision of social safety nets.
  • Sustaining private sector activity.
ICIEC has actively contributed to the implementation of SPRP in cooperation with IsDB Group peers and succeeded in supporting Member States’ efforts combatting the pandemic with a total to date of USD 1,414 million in approved transactions. ICIEC’s cover is facilitating the import of emergency goods and necessities into Member States, such as medical equipment, food, wheat, milk powder, crude oil, and gas. In addition, ICIEC is providing insurance cover for critical infrastructure projects to support COVID-19 relief efforts, such as the construction of regional hospitals.

The COVID-19 Guarantee Facility

To encourage trade and investment during the COVID-19 pandemic, ICIEC and IsDB jointly launched the COVID-19 Guarantee Facility (CGF), an innovative program to support the financing of trade. The CGF also supports SMEs to sustain activity in core strategic value chains and ensure the continuity of necessary supplies, mainly to the health and food sectors, including vaccine procurement.

The CGF acts as a source of private capital funding through attracting additional participants to the IsDB funding structure. With ICIEC being the Guarantee Facility agent, the CGF will provide insurance protection against non-repayment events in line with the appetite of external partners through the issuance of adapted versions of the ICIEC Non-Honoring of Sovereign Financial Obligation (NHSFO) policies. The facility has been implemented by the two entities to support COVID-19 hit industries in the OIC Member States and to attract cross-border financing from international Banks in Member States.

The ICIEC-ISFD COVID-19 Emergency Response Initiative (ICERI)

ICIEC and the Islamic Solidarity Fund for Development (ISFD), have collaborated to create the ICIEC-ISFD COVID-19 Emergency Response Initiative (ICERI) program, a rapid COVID-19 response that employs an innovative financial structure, providing more confidence to suppliers, investors, and financiers of COVID-19 related transactions and extends some relief to the Member Countries on their borrowing costs. The mechanism involves a grant of USD 5 million provided by ISFD which ICIEC has been using as a subsidy for the premium charged to the Member States or as a first-loss cushion.

The program can mobilize up to USD 400 million for the procurement of urgent product needs:

  1. Medical equipment, pharmaceutical products and other related items that are needed for the fight against the COVID-19. Including but not limited to, protective gear, testing kits, sanitizers, ventilators etc.
  2. Essential commodity items, including essential food supplies and energy commodities

To date, USD 824 million worth of trade transactions has been supported by the ICERI program in the food and other essential commodities sectors, using only USD 1 million of the subsidies funded by ISFD. This reflects a leveraging of more than 150 times.

IsDB Group Vaccine Facility

As part of IsDB Group’s as part of SPRP 2.0, ICIEC is contributing to the IsDB Group Vaccine Initiative (IVAC), supporting Member Countries in accessing the COVID-19 vaccine. For it’s part, ICIEC is providing risk mitigation solutions to international financial institutions through its Credit and Political Risk Insurance products, facilitating additional resource mobilization from the international market.

ICIEC is offering its services throughout all the four phases of the vaccine facility:

  1. Development
  2. Manufacturing
  3. Procurement
  4. Vaccine Delivery

Afreximbank-AVATT vaccine transactions have been considered under the CGF and ICERI program for a number of ICIEC Member Countries. IsDB has expressed interest in collaborating with ICIEC to guarantee Afreximbank’s financing against the risk of Non-Honoring of Sovereign Obligations (NHSO) by Member Countries. The initial amount of this transaction is approximately USD 106 million, subject to final country allocation.

ICIEC is also considering USD 134 million in reinsurance support to Afreximbank under the AVATT initiative to facilitate the acquisition of COVID-19 vaccines to 12 common Member Countries in Africa.

Further ICIEC Response Efforts

Memorandums of Understanding:
ICIEC has signed several Memorandums of Understanding (MoU) with Export Credit Agencies ECAs throughout the pandemic. These partnerships facilitate flexible yet strong agreements for risk sharing in the form of reinsurance or co-insurance, supporting both parties to increase their risk appetite for trade transactions and investments. Through the expanded trade coverage supported by these partnerships, firms in member countries can access new markets, grow in existing markets, and in the process generate employment and economic growth.

During the pandemic, ICIEC signed MoUs with the following partner institutions:

Webinars:

ICIEC has engaged in webinars with key partners to roll out COVID-19 response measures and funding, discuss the impact of COVID-19 on IsDB member countries, and make plans for the continued support of those in need.

The IsDB Group Private Sector Action Response to COVID-19: discussing the challenges facing the Private Sector and Global Economy during the COVID-19 outbreak. The IsDB Group Private Sector entities also presented an immediate joint action response and the outlook to combat the COVID-19 pandemic, whilst incorporating the new reality.

Impact of COVID-19 on the Insurance of Investment and Export Credit for Strengthening Intra-OIC Trade and Investment: hosted jointly by ICIEC and the Islamic Centre for Development of Trade (ICDT) to discuss the role and experiences of insurance and export credit agencies (ECAs) in OIC states, as well as the insurance sector response to the COVID-19 pandemic. The webinar highlighted the importance of the investment and export credit insurance sector in covering risks for countries, local companies, and international trade partnerships.

Introducing AATB’s Investment Pillar to Financial Institutions and Partners: Building Investment Bridges Between Arab and African Countries: under the umbrella of the Arab-Africa Trade Bridge (AATB) program, ICIEC, the Islamic Trade Finance Corporation (ITFC), and the Islamic Corporation for the Development of the Private Sector (ICD), in collaboration with the IsDB Group Business Forum hosted this event to discuss key investment, trade and insurance pillars designed to improve trade between Arab and African countries. The webinar also showcased potential business opportunities for Arab and African countries in key industries, while discussing projects and activities involving the growth of trade in the two regions.

The Role of Credit and Political Risk Insurance in Resource Mobilization in the Post-COVID-19 Era: Leading up to the IsDB Group’s Annual Meeting for 2021, ICIEC hosted this online event for more than 300 participants worldwide. The webinar discussed the ongoing economic impact of the pandemic across Member Countries and how PRI, in combination with key industry players, can support the recovery of global trade and investment

The Role of ICIEC in attracting PPP Investments in the Post-Covid-19 Era: Held during the IsDB Group Annual Meeting 2021, held in Tashkent Uzbekistan, ICIEC held this high-level panel discussion to showcase how ICIEC supports sustainable PPP projects and to shed the light on the role of Governments, MDBs, ECAs, and Private Sector Business Partners by identifying the linkages and drivers of investment and trade.

Project Highlights

ICIEC has contributed to a number of projects that have promoted the “3 R” action plan, enabling countries to combat COVID-19, construct and sustain healthcare facilities, maintain the flow of goods, and secure investments for continued growth.

In this difficult time, our solutions are here to support you
 
Banks and Financial Institutions

Credit Insurance SolutionsBank Master Policy (BMP)ICIEC will provide your financial institution with the confidence and ability to offer Islamic financing for exports with up to 90% of potential losses covered. Documentary Credit Insurance Policy (DCIP) ICIEC will help you protect your balance sheet against non-payment of Letters of Credit, ensuring your institution can safely and securely grow its Letter of Credit confirmation business.

Investment Insurance Solutions

Non-Honouring of Sovereign Financial Obligations (NHSO)In these unprecedented times, we offer the protection you need from country risk.
Foreign Investment Insurance Policy (FIIP) for Financing FacilityFeel safe financing projects abroad and attract additional project capital in the process as our FIIP helps you mitigate against country risk.

 
Corporates

Credit Insurance Solutions

Comprehensive Short-Term Policy (CSTP)
Protect your balance sheet and insure your export sales against risks ranging from non-payment to expropriation.

Specific Transaction Policy (STP)
Certain risks may worry you more than others, get the peace of mind you need with our Specific Transaction Policy.

Specific Transaction Policy (Contract Frustration)
Protect yourself from contract frustration risks, and unfair cancellation of contracts.

Investment Insurance Solutions

Foreign Investment Insurance Policy (FIIP) for Equity
Feel safe when expanding your business abroad through our FIIP, which mitigates against country risk.

 
Export Credit Agencies and Insurers

Quota Share Treaty
Protect your portfolio against commercial and political risks with our Quota Share Treaty.
Reinsurance Facultative Agreement
Reinsure your foreign investment insurance with this product.

Reinsurance of Domestic Business
Transfer some of the risk of the domestic business you have insured with this product.

Excess of Loss
Protect your portfolio and limit your losses with this product.

Coronavirus Response Resources from IsDB Group and Beyond