Credit insurance is divided into the following three types:
1, commercial credit insurance
Commercial credit insurance is mainly aimed at the risks arising in the process of commodity trading.
In the process of commodity exchange, one party to the transaction obtains the property or service of the other party in the form of future repayment agreed in the credit relationship, but the possibility of causing losses to the other party due to failure to fulfill the payment commitment exists at any time. For example, the buyer's default on the seller's payment is the bad debt loss that the seller may face in the accounts receivable. Some people will think that provision for bad debts is a kind of self-protection. Participating in this kind of commercial insurance not only needs to pay premiums to increase the cost of enterprises, but also the participation of insurance companies in supervising the business activities of enterprises will damage the independence of company management. However, this is not the case. For small companies, the amount of funds available for turnover is very small. If a receivable turns into a bad debt, the whole enterprise may be paralyzed, and the provision for bad debts will not help. There are countless examples of this situation. For larger companies, it is generally not difficult because of a few bad debts. However, from the "triangular debt" that happened in China in recent years and many examples of C-type enterprises, we can see that credit insurance is an effective measure to avoid credit risk and maintain the normal operation of enterprises. Including (1) loan credit insurance, (2) credit insurance, and (3) prepaid credit insurance.
2. Export credit insurance
ExportCreditInsurance, also known as export credit insurance, is a policy support measure taken by governments to improve the international competitiveness of their product credit insurance, promote their export trade, ensure the safety of exporters' foreign exchange collection and the credit safety of banks, and promote economic development. It is a non-profit insurance business and an indirect means for the government to regulate the market economy. It is a policy means to support exports, which is allowed in principle by the subsidy and countervailing agreement of the World Trade Organization (WTO). At present, 12% ~ 15% of the global trade volume is realized with the support of export credit insurance, and export credit insurance institutions in some countries even provide more than one third of their total exports in that year.
3. Investment insurance
Investment insurance, also known as political risk insurance, covers investors' investment losses and gains caused by insuring political risks.
The insured and the insured of investment insurance are overseas investors. The main purpose of investment insurance is to encourage capital export. As a new insurance business, investment insurance has become a necessary condition for overseas investors to invest since it appeared in European and American countries in the 1960s.
Second, the types of insurance covered by credit insurance mainly include
commercial credit insurance
export credit insurance
Investment insurance
3. What are the main types of insurance covered by credit insurance?
Credit insurance is divided into the following three types:
1、
Commercial credit insurance is mainly aimed at enterprises in the process of commodity trading.
In the process of commodity exchange, it is always possible for one party to obtain the property or service of the other party through the credit relationship, but it will cause losses. For example, if the buyer defaults on the seller's payment, the bad debt loss he can face is already a kind of self-protection. Participating in this kind of commercial insurance will increase the cost of the enterprise, and the insurance company's participation in supervising the business activities of the enterprise will damage the company's management. For small companies, the amount of funds available for turnover is small, an account receivable is paralyzed, and the provision for bad debts is useless. There are countless examples of this situation; In order to cover up the "triangle debt" caused by a few bad debts in the capital week, we can see that credit insurance is a measure to avoid credit effect in many cases of C enterprise. Including (1) loan 3) prepaid credit insurance.
2
ExportCreditInsurance, also known as the international competition of credit insurance for exporting domestic products, guarantees the safety of exporters' foreign exchange collection and the credit safety of banks, and promotes economic development. It is a policy support measure to provide risk protection for enterprises in economic activities such as export trade, foreign investment and foreign project contracting. As a non-profit insurance business, it is an indirect adjustment (WTO) subsidy and countervailing agreement of the government to the market economy, which supports export in principle. At present, it is realized with the support of export credit insurance in the world, and the export credit insurance institutions in some countries provide one-third of the total export credit insurance.
Investment insurance, also known as political risk insurance, covers investors' investment and losses caused by earning risks.
The insured and the insured of investment insurance are overseas investors. The main purpose of developing investment insurance is to develop new insurance business. Investment insurance has been a prerequisite for investment activities since it appeared in European and American countries in the 1960s.
4. What are the main types of insurance covered by credit insurance?
Credit insurance is divided into the following three types:
1 commercial credit insurance
Commercial credit insurance is mainly aimed at the risks arising in the process of commodity trading.
In the process of commodity exchange, one party to the transaction obtains the property or service of the other party in the form of future repayment agreed in the credit relationship, but the possibility of causing losses to the other party due to failure to fulfill the payment commitment exists at any time. For example, the buyer's default on the seller's payment is the bad debt loss that the seller may face in the accounts receivable. Some people will think that provision for bad debts is a kind of self-protection. Participating in this kind of commercial insurance not only needs to pay premiums to increase the cost of enterprises, but also the participation of insurance companies in supervising the business activities of enterprises will damage the independence of company management. However, this is not the case. For small companies, the amount of funds available for turnover is very small. If a receivable turns into a bad debt, the whole enterprise may be paralyzed, and the provision for bad debts will not help. There are countless examples of this situation. For larger companies, it is generally not difficult because of a few bad debts. However, from the "triangular debt" that happened in China in recent years and many examples of C-type enterprises, we can see that credit insurance is an effective measure to avoid credit risk and maintain the normal operation of enterprises.
(1) loan credit insurance
(2) Credit insurance on credit
(3) Prepaid credit insurance
2 export credit insurance
Exportcreditinsurance, also known as export credit insurance, is a policy support measure taken by governments to improve the international competitiveness of their product credit insurance, promote their export trade, ensure the safety of exporters' foreign exchange collection and the credit safety of banks, and promote economic development. It is a non-profit insurance business and an indirect means for the government to regulate the market economy. It is a policy means to support exports, which is allowed in principle by the subsidy and countervailing agreement of the World Trade Organization (wto). At present, 12% ~ 15% of the global trade volume is realized with the support of export credit insurance, and export credit insurance institutions in some countries even provide more than one third of their total exports in that year.
3 Investment insurance
Investment insurance, also known as political risk insurance, covers investors' investment losses and gains caused by insuring political risks.
The insured and the insured of investment insurance are overseas investors.
The main purpose of investment insurance is to encourage capital export. As a new insurance business, investment insurance has become a necessary condition for overseas investors to invest since it appeared in European and American countries in the 1960s.