28 June 2012 6:53am

The Productivity Commission has called for an overhaul of the Export Finance and Insurance Corporation, after finding that its business model did not meet its charter, that the corporation did not produce an adequate rate of return and that its governance processes were weak.

In a report issued this week, the Commission has recommended that EFIC change its business model from operating in "market gaps" – where insurers and lenders are not able or are unwilling to provide services to exporters – to one of addressing market failures.

The Commission said EFIC should stop dealing...