Insurers guarantee investments

Insurance guarantees serve a similar purpose as bank guarantees but are regulated differently. They do not affect a company's credit limits, allowing for better financial flexibility. The market for insurance guarantees has grown significantly, indicating their increasing importance in financing investments in Poland. Various types of guarantees are commonly used, especially in large investment projects, providing security for contract execution and other obligations. The mechanism applies to both public tenders and private investments, with insurers assessing clients to mitigate risks. The potential for growth in the insurance guarantee market is substantial, driven by rising infrastructure and industrial projects.