Foreign Credit Insurance Association (FCIA),
Definition of Foreign Credit Insurance Association (FCIA):
The Foreign Credit Insurance Association (FCIA) is an insurance association that provides insurance to US exporters against non-payment by foreign consumers due to commercial and political risks.
The Foreign Credit Insurance Association offers insurance to reduce the risk that an exporter runs when doing business with a foreign country. Because exporters usually do not receive a prepayment for their shipped orders, they run the risk that buyers do not pay. Common causes of failure are business issues, such as buyer cash flow issues, bankruptcy or other market issues. The international market also presents political threats, such as war, political revolution or difficulties in foreign exchange. To further complicate matters, due to the presence abroad, buyers are outside the scope of the rules that generally allow sellers to cover losses in the domestic market.
An independent federal agency was founded in 1961 by a group of American insurance companies that handled export goods for American companies. The Overseas Credit Insurance Association is sponsored by the Export-Import Bank and protects exporters from political and trade risks.
Meaning of Foreign Credit Insurance Association (FCIA) & Foreign Credit Insurance Association (FCIA) Definition