Dhaman is an Arab supranational political risk and credit insurance provider owned by Arab states and financial institutions. It commenced operations in 1975 and is based in Kuwait. Dhaman promotes foreign direct investment in Arab countries by providing various insurance policies covering political and commercial risks to investors, exporters, banks, and other entities. These policies help mobilize funding and claims are typically paid promptly. Dhaman also undertakes research and cooperation to promote investment in the Arab region.
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
DID YOU KNOW??
Today, the insurance industry in Malaysia offers more than just financial protection; there’re also great job opportunities for you.
Whatever careers you choose in this industry; you’ll enter an industry that offers great career development and growth through training and education.This is great place to start!!
View what career opportunities offered to talented people in the Malaysian insurance industry today.
You can also explore various other careers in insurance, the next question is only – when? The future’s bright. The future starts today!
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
DID YOU KNOW??
Today, the insurance industry in Malaysia offers more than just financial protection; there’re also great job opportunities for you.
Whatever careers you choose in this industry; you’ll enter an industry that offers great career development and growth through training and education.This is great place to start!!
View what career opportunities offered to talented people in the Malaysian insurance industry today.
You can also explore various other careers in insurance, the next question is only – when? The future’s bright. The future starts today!
Equity tips are necessary to trade without risk in stock market and to earn intraday profit. Equity newsletter provided by theequicom contains intraday tips along with profitable trading strategies.
Export Credit Guarantee Corporation of IndiaIsha Joshi
Export Credit Guarantee Corporation of India Ltd. ( ECGC ) is a Government of India Enterprise which provides export credit insurance facilities to exporters and banks in India. It functions under the administrative control of Ministry of Commerce & Industry, and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking , insurance and exporting community. Over the years, it has evolved various export credit risk insurance products to suit the requirements of Indian exporters and commercial banks. ECGC is the seventh largest credit insurer of the world in terms of coverage of national exports. The present paid up capital of the Company is Rs. 1200 Crores and the authorized capital is Rs. 5000 Crores.
ECGC is essentially an export promotion organization, seeking to improve the competitive capacity of Indian exporters by giving them credit insurance covers comparable to those available to their competitors from most other countries. It keeps its premium rates at the lowest level possible.
Basics of Insurance by RapidValue SolutionsRapidValue
This presentation explains the process of Insurance in a very Simplistic and schematic way. It starts with the definition of Insurance and moves onto the types of insurance like life insurance, general insurance, P&C insurance, Auto insurance etc. It explains the insurance industry sales channels and the customer purchase process. The presentation also looks to explain the claims process. It suggests, citing statistics from various sources, that insurance industry will have to go thorough digital transformation as it will benefit both the insurers and the customers.
SINOSURE Credit insurance tool - what is it and how buyers from all over the world can use it to improve trading terms with their suppliers from China.
Trade Credit Insurance- A Boon for Financiers.pptxM1NXT
Trade credit insurance (TCI) is a type of insurance that covers the risk of non-payment by buyers of goods or services. It is a useful tool for financiers who provide funding to businesses based on their trade receivables. In this blog, we will explore how TCI can benefit financiers and what options are available in the market.
Visit:https://www.m1nxt.com/trade-credit-insurance-a-boon-for-financiers/
1. Activities & Services
More than 35 years of experience
in credit & political risks insurance
The Arab Investment & Export Credit Guarantee Corporation
“Dhaman”
Your Partner for Success!
www.dhaman.org
2. The Arab Investment & Export Credit Guarantee Corporation “Dhaman”
WHO WE ARE
Dhaman is an Arab supranational political risk (investment) and credit insurance provider. Its membership
comprises all Arab states and four pan regional financial institutions owned by Arab governments. A
Shareholders’ Council and a Board of Directors representing the Member Countries guide the programs
and activities of Dhaman. Voting power is weighted according to the share of capital each Member Country
has. Based in Kuwait, Dhaman commenced its operations in April 1975 as the first multilateral investment
guarantee provider in the world. It is rated AA stable outlook by S&P.
OUR MEMBER COUNTRIES
Algeria
Bahrain
Djibouti
Egypt
Emirates
Iraq
Jordan
Kuwait
Lebanon
Libya
Mauritania
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Somalia
Sudan
Syria
Tunisia
Yemen
OUR TEAM
Our staff has extensive experience in commercial and political risk insurance, with backgrounds including
risk management, banking, financial analysis, trade and project finance and international law.
operations@dhaman.org
3. OUR HISTORY
1974 Establishment of the Corporation
1975 Started providing investment guarantee against political risks
1985 Launching of “The Investment Climate in the Arab Countries” report
1986 Started providing credit risk insurance
2000 Increase of the capital by USD 100 million
2005 Launching of the lease insurance policy
2006 Launching of the LC confirmation insurance policy
2008 First rating obtained by Dhaman AA- stable outlook by S&P
2009 Launching of AMAN UNION, a union of Arab & Islamic ECAs
2010 Launching of the factoring insurance policy
2011 Started providing domestic credit insurance in Member countries
2012 DHAMAN is rated AA Stable Outlook by S&P
OUR MISSION
Promote the flow of foreign direct investment (FDI) into Arab countries through providing political risk
insurance to Arab and non Arab investors and lenders;
Enhance Arab countries’ exports through providing political and commercial risk insurance to Arab
exporters;
Support Arab domestic trade through providing commercial risk insurance to B to B sales;
Support economic growth in Arab countries through providing political and commercial risk insurance to
non Arab exporters and financial institutions involved in the sales of commodities, raw materials, equipment
and other developmentally sound goods and services to Arab importers.
OUR VALUE
Research and FDI promotion: Dhaman undertakes the promotion of the flow of investments within Arab
countries by carrying out research and knowledge sharing activities, technical assistance to Arab FDI
promotion agencies, and cooperation with Arab and international organizations involved in investment
promotion.
Prompt claims payment: thanks to its strong balance sheet and stable stream of operating income,
Dhaman pays claims promptly and within short waiting periods: from one to four months depending on
the insured risk. Compensation reaches 90% of the loss with the possibility to obtain 100% of the loss in
some cases. Dhaman’s preferred creditor status with its member countries allowed the recovery of 100%
of political risk related claims in Arab countries.
Easier access to funding: our insurance policies help exporters and investors obtain trade and project
finance from banks on enhanced terms. Our rating helps reduce provisioning requirements for lenders,
leading to reduced borrowing costs.
Capacity mobilization: Dhaman is able to provide insurance for large scale transactions through its ability
to secure reinsurance capacity.
www.dhaman.org
4. OUR CUSTOMERS
Dhamanprovidesbespoke,comprehensive,andcost-effectiverisk-mitigationproductstoinvestors,exporters,
banks, lessors, factors and credit and political risk insurers.
THE RISKS WE COVER
Commercial Risks:
Bankruptcy and protracted default;
Political Risks:
Nationalization, confiscation, sequestration, expropriation and compulsory seizure.
Military actions emanating from the Country of Import , the Host Country or from a foreign source.
Public civil disturbances such as revolutions, coups d’états and acts of violence of a public nature.
Currency inconvertibility, non-transfer and imposition of a discriminatory rate of exchange.
Breach of contract by a host government (includes arbitral or judicial award default).
OUR PRODUCTS
For exporters:
Short Term Credit Insurance Policy covering revolving receivables generated from pre-agreed foreign
buyers. The cover may be extended to buyers in the local market (Domestic Credit Insurance). Risks
covered: commercial and political.
Medium to Long Term Credit Insurance Policy covering a single transaction with an agreed amortization
schedule (up to 7 years). Risks covered: commercial and political.
Unconfirmed Letter of Credit Insurance Policy protects against the payment default of the issuing bank
under the Letter of Credit (specific transaction). Risks covered: commercial and political.
For investors
Investment Insurance Policy
Covers Arab and non Arab direct or indirect investments in Arab countries, including total project ownership,
equity and investment portfolios (shares & bonds). Cover is provided for 10 years and can be extended to
15 years. Both new and existing investments are eligible. Risk covered: political only.
Contractor’s Equipment Insurance Policy
Covers mobile assets used by the contractor in the host country. Risk covered: political only.
operations@dhaman.org
5. For Banks
Confirmed Letter of Credit Insurance Policy protects the L/C confirming bank against the default of the
issuing bank. Risks covered: commercial and political.
Buyer Credit Insurance Policy (Trade Finance): protects lending banks against the non-payment by the
foreign borrower (importer or bank) of the credit amount disbursed to the exporter. Buyer credit insurance
is available for short term as well as for medium to long term. Risks covered: commercial and political.
Loan Insurance Policy (Project Finance): protects the lender against the risk of non-payment of a Public
Debtor (Non-honoring of Sovereign Financial Obligation) or a Private Debtor. Loan tenor must exceed 3
years. Risk covered: political only.
For Factors and Lessors
Factoring Insurance Policy covering revolving receivables generated from pre-agreed foreign and local
buyers. Risks covered: commercial and political.
Leasing Insurance Policy: protects the lessor against the default of the lessee. Cover applies to both
cross border and domestic leasing transactions. Risks covered: commercial and political for cross border
leasing and commercial only for domestic leasing.
For Credit and Political Risk Insurers and reinsurers
Dhaman provides additional capacity to credit and political insurers and reinsurers on a facultative basis.
Dhaman significantly participates in quota share reinsurance treaties signed between ECAs from Member
Countries and international reinsurance providers.
www.dhaman.org
6. “Dhaman”
Your Partner for Success!
Regional Office:
Kingdom of Saudi Arabia
P.O. Box 56578, Riyadh 11546
Tel: (00966) 1 4789270 / 80
Fax: (00966) 14781195
Email: riyadhoffice@dhaman.org
CONTACT DETAILS
Main office:
The Arab Investment & Export Credit Guarantee Corporation
P.O. Box 23568 Safat 13096
State of Kuwait
Tel: (00965) 24959555 / 000
Fax: (00965) 24959596 / 7
Email: operations@dhaman.org
Website: www.dhaman.org
www.dhaman.org