While flexible exchange earnings to increase the competitiveness of export enterprises, but the risk is increased accordingly. Export credit insurance exchange earnings, compared with an increase of the safety factor.
Export credit insurance is export trade and overseas investment in the foreign buyer credit risk for the insurance object, the legitimate rights of export enterprises in the implementation of export contracts should enjoy credit insurance for the insurance marker. Export credit insurance is a non-profit insurance policy provides insurance reserve fund by the state finance, the State to promote the country's exports, foreign exchange guarantee security and the development of export enterprises. Currently, the Export-Import Bank of China and China People's Insurance Company can provide export credit insurance services.
Exporters export credit insurance coverage can protect not only the safety exchange earnings, improve the competitive position and ability in the international market, you can also implement "export diversification" strategy to further develop new markets. The Export Insurance can also provide buyer credit investigation services, enabling exporters to obtain financing for convenience, to help resolve the difficulties of the cash flow, the ability to expand its operations, and can recover the debt, reduce the loss of business and the state.
Export credit insurance category
Currently, the export credit insurance insurance, including commercial and political risks. Business risks include: buyer insolvency and bankruptcy, the buyer to reject the goods and pay the purchase price, the buyer payment default. Political risks include: the buyer countries prohibit or restrict the exchange, the buyer's country import controls, import licenses revoked buyer's country, the buyer's country or the money to go through a third country enacted a deferred payment order, war, rebellion or revolution, as well as the insured and the buyer They were unable to control the extraordinary events.
According to Miss Cai Ying Chinese People's Insurance Company, Guangdong Branch of the International Department of Insurance introduction, insured export credit insurance, said the risk of loss exporters will get compensation. Only in 1998, due to bankruptcy, arrears, risk rejection and protest Southeast Asian financial crisis, they are paid to exporters of more than 830,000 US dollars, benefiting exporters 9.
According to different export credit terms stipulated in the contract, the export credit insurance business is divided into short-term and long-term export credit insurance and export credit insurance into two categories. Short-term export credit insurance applicable period within 180 days, the longest no more than 365 days, taking commercial credit payment. Short-term export credit insurance can help exporters to ensure receipt, export financing and carry out investigations buyers. And long-term export credit insurance applies to the credit of more than one year, is generally not more than 10 years of exports.
How to save insurance costs
Although many exporters know that the export credit insurance, but few people interested this risk. According to Ms. Cai analysis, mainly because of insurance issues. The high cost of exports, had been no use of space, and then to increase certain export credit insurance, more difficult to have a profit. In this case, most exporters prefer to follow its past practice.
So how do you buy both export credit insurance, but also save some expenses? First of all, before signing with foreign investors, it should be taken into account as a normal cost of the project. Miss Choi said that exporters comply with surly if the insurance provisions, to fulfill the obligations of the insured, and resolutely put an end to lug Paul, omission or deliberately omitting to report the phenomenon, batch truthfully fill in the export declaration, duly paid to the insurance company insurance, and actively cooperate with the insurance company to do risk prevention work, you can make premiums to a minimum.
Because, first, export credit insurance rates depend on country-owned buyer risk category, and the degree of risk of payment on credit deadline length three factors exporter before and after the transaction should be carefully selected and integrated control; secondly, from the insurance normal operation, the insurance companies through financing, the establishment of the insurance fund to compensate for economic losses implement its basic functions, while insurance fund raising, places to accumulate charge in the form of premiums.
