Reporter: What are the main aspects of credit insurance business in China?
General Manager Tang: In the company formation plan approved by 200 1 the State Council, it is proposed that China Export Credit Insurance Corporation is a policy company. So, what are the policies of China Credit Insurance? First of all, China Credit Insurance's policy is determined by its main task. China Xinbao's main task is to support the export of goods, technologies and services, especially high-tech and high-value-added mechanical and electrical products, by means of policy-based export credit insurance according to the country's foreign policy, foreign trade, industry and finance policies. Therefore, we have the responsibility to support and promote the implementation of a series of policies and strategies for the country's opening up. Such as "going out" proposed by the CPC Central Committee and the State Council.
The implementation of strategy, foreign trade market diversification strategy, winning by quality strategy, promoting trade through science and technology strategy and big economic and trade strategy; National foreign policy, national financial foreign exchange reserves and national financial security are also closely related to our business development; Supporting the export of high-tech and high value-added commodities through credit insurance can also improve the industrial structure of the national economy and implement domestic industrial policies.
Secondly, in order to ensure that our company can successfully complete the above policy tasks, the state has also given our company a variety of fiscal and tax preferential policies: first, the Ministry of Finance allocates our company's capital from the budget; Second, our business is exempt from turnover tax such as business tax; The third is to realize the "first levy and then return" of corporate income tax. Export enterprises with credit insurance can enjoy these preferential policies through our rich products and preferential rates.
Reporter: It is understood that your company regards improving business growth as an important work goal this year. What do you think of this?
General Manager Tang: Over the years, the scale of China's export credit insurance has been hovering around 1% of the total export volume, which is far from the world average 12%. Export credit insurance has little support for exports, which has caused many concerns. Therefore, after repeated research by relevant internal departments and branches, our company initially outlined a three-year development blueprint and set specific goals for this year. The general idea is: make the scale of export credit insurance exceed the development speed of national economy and export, and finally realize leap-forward development. The company's specific business target this year is: the underwriting amount is doubled compared with last year.
Reporter: Can you tell us something about the business development of China Xinbao in the first quarter of this year?
Manager Tang: Since the second half of last year, our business has started to improve. In the first quarter of this year, our business entered the track of rapid development. In coastal areas, the export credit insurance business has developed rapidly, and the underwriting amount has increased by about 150% compared with the same period of last year. The main reasons are as follows: in the previous stage, the marketing propaganda of relevant departments and our company began to take effect gradually; Many enterprises have improved their understanding of credit insurance and have a more comprehensive understanding of its positive role. Governments at all levels have continuously increased their support for credit insurance; The internal rules and regulations of our company have been formulated, the operation mechanism is normal, the service is more standardized and the efficiency is improved. The rapid development of business is also what we expected.
Reporter: How does China Credit Insurance Plan realize the all-round development of diversified businesses and give full play to the financing function of export credit insurance?
Tang: There are three main types of export credit insurance business, namely, short-term insurance business within one year, medium-and long-term business within one to ten years and export guarantee business. At present, the development of these three businesses is still in its infancy, and it is necessary to ensure the all-round growth of all businesses. At the same time, we should focus on breaking through short-term insurance business. The medium and long-term business volume should also increase exponentially, which is in line with the national "going out" strategy. As the guarantee business is a new business of China Xinbao, we should boldly explore the financing business that directly provides guarantee for the export of enterprises and actively promote the financing function under export credit insurance. The development of financing function is also conducive to the rapid development of export credit insurance business. At present, the financial shortage of foreign trade enterprises is still serious, and the arrears of tax refund are very serious. There is considerable room for financing function under export credit insurance, which is also conducive to the growth and development of foreign trade enterprises. At present, our company has signed cooperation agreements with Bank of China, CITIC Industrial Bank and China Merchants Bank, and is actively exploring the possibility of developing export credit insurance financing business with other commercial banks.
Reporter: In the second half of last year, China Xinbao launched the activity of "Priority Support for Key Quality Customers".
Strategy, how is it going so far?
General Manager Tang: Last year, our company timely launched the strategy of "giving priority to key support and high-quality customers", aiming at giving full play to the supporting role of export credit insurance in expanding exports in the early stage of the company's development. Through a period of practice, this strategy has achieved good results.
We provide better service, more convenient channels and more flexible rates for key quality customers. By the end of 2002, our company had "key quality customers"
There are 5 1 company, accounting for only 5% of our company's policyholders, but their short-term insurance coverage has accounted for 40% of our company's overall size.
Reporter: It is said that China Xinbao will launch a series of new short-term insurance products in the near future. What are the characteristics of these products?
General Manager Tang: To fulfill the responsibility entrusted by the state to China Credit Insurance, we must strengthen the support for foreign trade and economic enterprises, make products closer to the market and meet the different needs of export enterprises. Therefore, the company attached great importance to the development of new products from the very beginning, and set up a product development department. On May 8 this year, we will launch five new short-term insurance products to the market, which have their own characteristics and can meet the various needs of export enterprises to a certain extent. The terms of the new product fully consider the interests of the insured. For example, short-term export credit insurance can support enterprises to expand exports by means of non-letter of credit to the greatest extent. Under this product, all the non-L/C export businesses exported by enterprises are insured with export credit insurance, and the insured amount reaches a considerable scale; China Xinbao will give enterprises a very favorable rate, which will greatly reduce the related expenses for enterprises applying for this product. For another example, we have specially launched short-term export L/C insurance products. Some enterprises often think that the risk of foreign exchange collection of export accounts receivable is very low under the condition of payment by letter of credit. However, the international market is changing, and the trade risks of letters of credit also exist objectively. 1997 both the Asian financial crisis and the recent financial turmoil in Argentina show that the trade of letters of credit is not absolutely safe, nor can we sit back and relax, what's more, the rate of insurance by letters of credit is only about half of the unified rate, which is completely affordable for enterprises. Shandong is the largest business area of our company, and the main experience is that the enterprise letter of credit insurance business is relatively large. In order to support the export of mechanical and electrical products and complete sets of equipment, we specially designed short-term insurance "specific contract insurance" to meet the export enterprises' export by means of non-letter of credit payment. At the same time, in order to support enterprises to make full use of installment payment for trade, we also introduce "buyer's default insurance" to meet the needs of enterprises to expand exports.
Reporter: Does China Credit Trust have any new service measures in claims settlement?
Mr. Tang: The compensation of insurance companies has always been an important issue of great concern to policyholders, and it is also a place where some policyholders have opinions on insurance companies. As an insurance company, China Xinbao has always attached great importance to the payment of policyholders. For example, in some countries and regions in the world, it usually takes four months to report the possible losses caused by overdue accounts receivable of enterprises. That is to say, insurance companies only accept the loss report of enterprises after the accounts receivable are overdue for four months. After the establishment of China Xinbao, we carefully studied the problem of overdue accounts under export credit insurance, and made a decision that accounts receivable can be reported to our company as long as they are overdue. The purpose of this is: first, to prepare for enterprises to get claims as soon as possible; Second, it is conducive to minimizing possible losses in this business; Third, if the loss really happens, it can also create favorable conditions for the next stage of commercial collection. This practice is also advanced and rare in the world. At the same time, the management of accounts receivable is put into the process, which can greatly reduce the possibility of loss.
Reporter: What measures does China Xinbao take to support the development of the western region?
General Manager Tang: The market in the western region is underdeveloped, the degree of opening to the outside world is not enough, the scale of foreign trade is still small, the risk awareness of foreign trade enterprises is not strong, and the utilization rate of export credit insurance is very low. Therefore, we have decided to adopt a more flexible and preferential rate policy for enterprises in the western region to insure export credit insurance, which is conducive to giving full play to the positive role of export credit insurance in the export of the western region and fully conforms to the national policy of developing the western region. Many developed countries in the world have also adopted similar preferential and supportive policies for their underdeveloped areas, that is to say, it is completely in line with international practice to give more flexible measures and preferential treatment to the export credit insurance business in the western region.
Reporter: So, how does China Xinbao support the export of SMEs?
Director Tang: Since the establishment of the company, expanding the export of small and medium-sized enterprises has always been the focus of our company's support. Among our policyholders, a considerable number of enterprises belong to small and medium-sized enterprises (according to the standards of the former Ministry of Foreign Trade and Economic Cooperation, the annual export volume is less than US$ 6,543,800+0,500). Starting from the principle of large amount of insurance, we have certain scale requirements for enterprises to insure export credit insurance. For example, short-term insurance generally requires an insurance amount of 6.5438+0 million US dollars, and short-term insurance requires a contract amount of 500,000 US dollars. This practice is also the common practice of some foreign credit insurance institutions. For small and medium-sized enterprises, in many cases, the scale of insurance coverage is not up to the prescribed level, and some are only several hundred thousand or several hundred thousand yuan. In order to support small and medium-sized enterprises to expand their exports, we have voluntarily lowered the "threshold", and we will also actively accept small businesses insured by small and medium-sized enterprises. This is not only in line with the national policy of supporting the development of small and medium-sized enterprises, but also a common practice in most countries and regions.
Reporter: As far as I know, some foreign trade enterprises think that the insurance premium rate of China Xinbao is on the high side. What's your opinion?
Tang: The premium rate has always been a matter of great concern to enterprises and policyholders. The rate level of export credit insurance is closely related to the credit period of export trade, the risk situation of the export target country or region, the buyer's economic strength and credit rating. Therefore, when the products, technologies or services of enterprises are exported to emerging markets, the non-letter of credit settlement method is also adopted, and the repayment period is long, so the insurance premium rate level is naturally higher; On the contrary, we export to the United States, Japan, the European Union and other traditional markets, using letters of credit to settle accounts, using the unified insurance method, the repayment period is short, and the rate is definitely lower.
Generally speaking, if we consider the national support factors, our rates are basically in line with the international average. Of course, some enterprises, by adopting the method of "adverse selection", insure high-risk countries or buyers with poor credit, and naturally feel that the rate is higher. If these enterprises adopt unified insurance, the rate will be greatly reduced.