"It is important that the policyholder has realistic estimations of the total volume to the exported."
Commercial Risk Premium - This is the insurance cost itself, and is determined by a percentage of the total value of the exports performed during the period of cover.
In practice, the exporter cannot foresee in advance the total volume that will be exported. Therefore, SBCE determines a value based on the policyholder's estimations of total future shipments, known as the MINIMUM PREMIUM. This value corresponds to the minimum payment the exporter must make and which shall not be refunded.
As mentioned above, throughout the contract period, the policyholder must make monthly reports indicating how much has been exported and to which importer. At the end of the period of cover, the actual "Premium" can be calculated, by applying the "Premium Rate" on the volume of total exports. If this value turns out to be greater than the minimum premium established previously, then, the policyholder must pay this difference.
It is important that the policyholder's estimations of the total volume exported be realistic. If the estimated value is too high, the "Premium Rate" will be proportionally lower, but the "Minimum Premium", will in turn, be greater. The reverse is true in the case of very conservative projections.