Warning: You are using an outdated Browser, Please switch to a more modern browser such as Chrome, Firefox or Microsoft Edge.

Euler Hermes announces an extension to the protective shield scheme

Initiated and led by Euler Hermes, the joint agreement between credit insurers and the federal government will protect supply chains and trading in a way that allows businesses to operate with confidence and plan for future recovery. 

The economic shield (also known as “Schutzschirm”) protects previously healthy businesses against the negative effects of Covid-19, such as a slump in sales or the need for loans. Through the shield, credit insurance cover can be maintained despite the increased risk of defaults, with the government providing a counter-guarantee for indemnification payments up to 30 billion euros to commercially insured companies.

Credit insurers will continue to cover more than 400 billion euros, almost half of which is made up by Euler Hermes. The insurers will cede almost 60 percent of their premium income to the federal government and bear proportionate losses of up to 3 billion euros, as well as accepting default risks that exceed the guarantee.

“This agreement is an important signal during these volatile times. When we saw the magnitude of the pandemic, we knew we had to act, so we have been fighting to ensure our clients can continue business as normal as possible, despite significantly increased risks,” says Ron van het Hof, CEO of Euler Hermes for Germany, Austria, and Switzerland. 

By shaping the protective shield agreement, Euler Hermes continues to make a significant contribution to the economy, while laying foundations for its stabilization and recovery. 

“These measures will give companies time to prepare for the new normality, to adapt their business models to the current situation and ultimately put many companies back on the road to success by the end of June," says Van het Hof.

The agreement will see the protective shield extended until June 30, 2021, subject to the expected final approval by the EU Commission. The extension should further stabilize German businesses and provide them with the foundation to build a stronger future.

The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 790 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage 1.7 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of 140 billion euros and an operating profit of 10.8 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

*Including non-consolidated entities with Allianz customers.

Press contacts

Antje Wolters
Euler Hermes Germany
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:

Further Information

Are pandemics insurable?

The magnitude and impact of the COVID-19 pandemic on businesses, regardless of size or location, cannot be underestimated. Mass closures due to lockdown restrictions have sent shockwaves through the economy and led to the number of business interruption-related damages to soar. As a result, insurers have come under fire. They argue that pandemics are not insurable and insurance cover cannot be provided. Allianz, however, is working on solutions for the future...

Earthquake and Fire Research Center in Turkey expands family of Allianz research centers

The family of Allianz Centers for Technology is growing. With the Allianz Teknik Earthquake and Fire Testing and Training Center in Turkey, three Allianz Group research centers are now available to support customers and society in loss prevention, improve products and processes, and increase the operational safety of systems and consumer goods.

Insurance Outlook 2020: A Lost Year

Coronavirus will keep the insurance industry in weak health this year. But the pandemic could accelerate emerging trends in the industry. Digitalization, ESG and Asia are some keywords to watch, says the latest Allianz Global Insurance Report...