Foreign Credit Insurance Association
What Does Foreign Credit Insurance Association Mean?
The Foreign Credit Insurance Association (FCIA) is a United States agency founded in 1961 by a group of insurance company. It offers insurance to companies that export goods, which covers both financial and political risks.
Insuranceopedia Explains Foreign Credit Insurance Association
In 1961, 50 American insurance companies formed the FCIA. It was—and is—sponsored by the Export-Import Bank of the United States, the official export credit agency of the United States. It is in charge of providing insurance for exporting companies.
The FCIA covers financial risks that occur when the company needs to be rehabilitated financially by insurance money if its client fails to pay its obligations due to economic reasons like bankruptcy.
The other risk it covers is political. This happens when the client's country is in some kind of turmoil (like war) and they are, as a result, unable to pay its obligations to the exporting company.