The Euro and Cargo Insurance
Since its introduction on the 01/01/02 the Euro in a tangible form has brought both logistical and security fears to importers and exporters outside of the euro zone and to cargo insurers:
Since introduction large amounts of money (Euros and other European currencies) have been moved around Europe. Fears of thefts/hi-jacking by organised crime were a major concern to governments, banks and those specialist underwriters insuring bullion.
Many UK firms will set up Euro accounts in order to trade not only in Europe but also with countries outside of Europe, i.e: USA companies may prefer to trade in US Dollars and Euros only, with European suppliers forcing UK companies to trade in Euros. Extra work in dealing in currency exchanges can be avoided by setting up Euro accounts, this is no different to what many importers and exporters do at present by trading in US Dollars and other key currencies and holding accounts in these currencies.
Norwich Union can assist intermediaries and customers in dealing with the new currency by:
- Quoting Sums Insured in Euros and paying claims in Euros is possible if required by customers, a practise already followed for a variety of other currencies.
- Premiums charged in UK sterling after calculation of the exchange rate and conversion from non-sterling currency.