The development of export credit insurance and the

2022-10-12
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[export credit insurance] - the development of export credit insurance and China's actual situation

I. the development trend of export credit insurance

1. Privatization of operating institutions

export credit insurance can be divided into short-term and medium and long-term businesses. The privatization of short-term business is becoming more and more obvious. Only a dozen years ago, the government was the underwriter of all export credit insurance. Now, about 25% of short-term business is operated by private insurers. In 1996 alone, the premium income of private insurers exceeded US $400million and the insured amount exceeded US $40billion. It is estimated that in another decade or so, most of these short-term businesses will be controlled by private insurers

in the wave of privatization of business institutions, private insurers have provided more new products, which have been welcomed by exporters. In addition, exporters can also get trade financing more easily and get more risk protection, such as pre shipment risk, pre export financing risk, barter trade risk and other special risks. Private insurers can also provide insurance for transactions that do not apply to the Berne agreement guidelines

privatization of operating institutions has been welcomed not only by exporters, but also by the government that has been undertaking export credit insurance for a long time. The British Export Credit Guarantee Agency (ecdg) sold its short-term credit department to a private insurer in the Netherlands in 1991, and one of the prerequisites for the partial privatization of short-term credit by ecdg is that buyers must carry out political risk business. The progress of Europe in this regard has been relatively slow. In the United States, take the overseas private investment company (OPIC) as an example. It provides insurance services to American companies investing in nearly 40 developing countries around the world. In 1996 alone, it provided $11.2 billion in political risk insurance, an increase of 30% over 1995. These private insurers believe that political risk business is not only acceptable, but also attractive

2. repositioning of the role of the government

traditionally, the government export credit insurance institutions have focused on providing insurance for exporters, so as to promote the development of domestic trade at the 102nd annual meeting of the China chemical industry news Council, where chemical industry bosses gather, accumulate foreign exchange, and ignore the management and dispersion of risks in export credit insurance. This is why many high-precision export credit insurance institutions established or authorized by the government have suffered losses for years and are facing bankruptcy

Under this pressure, the government repositioned its role in export credit insurance and implemented a series of plans and measures to improve efficiency. For example, we should separate the role of developing trade from that of financing, strengthen the internal information network system to strengthen the understanding of overseas customers, and improve the ability of risk asset management, etc. The repositioning of the role of the government is also reflected in the changes in the relationship between the government and private insurers. At the beginning of the emergence of private insurers in experimental projects, the relationship between government export credit insurance institutions and them was a purely competitive relationship. With the development of private insurers, the government gradually realized the rationality and necessity of their existence and began to try its best to avoid competition and cooperate. This kind of cooperation is usually divided by risk sanctions. Generally speaking, political risks and medium - and long-term risks are borne by government agencies, while short-term commercial risks are borne by private insurers authorized by the government. When the export of many countries is involved and mutual financing is needed, the government and private insurers often become partners. The scope of cooperation between the government and private insurers is becoming wider and wider, and has developed into a unified arrangement for them by well-organized institutions

3. internationalization of export credit insurance services

under the general trend of trade globalization and financial globalization, export credit insurance services are also realizing internationalization. Before the 1980s, the export credit insurance business of the European Union was almost completely limited to the domestic market. After recognizing the particularity of export credit insurance, the European Commission issued a separate decree as part of the single market reform in 1992. The Act allows credit insurers registered in Member States to operate within the EU. Now, the EU credit insurance market has become a well functioning regional insurance market

Second, the current situation and development of China's export credit insurance

1. The current situation of China's export credit insurance

China's export credit insurance did not develop in the 1980s. In 1989, the state instructed the people's Insurance Company of China to handle export credit insurance business, which was mainly short-term business at that time. In 1992, PICC started its medium and long-term business. In 1994, the policy bank was established, and the Export Import Bank of China also had the power to handle export credit insurance business. The export credit insurance business was jointly handled by the people's Insurance Company of China and the Export Import Bank of China

at present, China stipulates that export credit insurance must adopt the method of "unified insurance". The so-called unified insurance means underwriting all export businesses of exporters. Export enterprises should apply for export credit insurance at one time for all businesses in a certain period of time or in a certain regional market. From the perspective of insurers, this provision expands the coverage and is conducive to dispersing risks. However, from the perspective of exporters, there is no need to insure for export businesses with little risk, such as regular customers or trade by letter of credit settlement. The way of unified insurance is not recognized by exporters, which is one of the main reasons for the slow development of China's export credit insurance and the lack of synchronous development with foreign trade

China's export credit insurance has developed for nearly 20 years, and the insured amount has increased significantly. The insured amount in 1999 increased 213 times than that in 1989, with an annual growth rate of 46.9%. Even so, China's export credit insurance is still at a low level, which is inconsistent with the substantial growth of foreign trade. In China's total export volume, only about 1.1% of them have been insured for export credit insurance, and the export trade equivalent to about 98% of China's total export volume has not been insured for export credit insurance. China's enterprises insured for export credit insurance account for only about 3% of China's export enterprises. Some Chinese enterprises have begun to modernize their economy and do not even know the existence of export credit insurance

2. Thoughts on the development of China's export credit insurance

(1) thoughts on the nature of export credit insurance

whether export credit insurance should continue to develop in the form of policy insurance, or considering the new trend of international export credit insurance development, the way of smuggling development, or a combination of the two. 7 in this issue, the author believes that we should

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