SCIO briefing on promoting high-quality development of banking and insurance sectors
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E-mail China.org.cn, March 5, 2021
Fourth, we created new services for micro and small-sized companies. Over the past two years, SINOSURE has sped up its digital transformation and upgraded its database for global companies and banks, allowing companies to access the information of 200 million overseas companies and 60 million Chinese companies. On that basis, we developed several products to serve micro and small-sized companies. First, we developed the product "alarm sensor" for micro and small-sized companies to collect information about risks and threats in a bid to support them to avoid risks and accept orders. Second, we developed the product "navigation system" for micro and small-sized companies to expand to new markets and accept new orders with the support of our database on international trade. Third, we offered professional and convenient training services for micro and small-sized companies. We then selected 1,000 micro and small-sized companies that focused on the new generation of information technology, high-end equipment manufacturing, new energy and new materials, and other industries and provided them training to help them grow. In 2020, SINOSURE served more than 100,000 micro and small-sized companies, covering 36% of the micro and small-sized companies with export businesses. SINOSURE's insurance for exports from micro and small-sized companies stood at nearly US$100 billion, up by 41%. And the claims paid to those enterprises totaled US$120 million, up by 28%. In addition, the average premium rate for micro and small-sized companies dropped by 35%, offering more benefits to those companies.
Fifth, we actively help companies to prevent and respond to risks. Since the outbreak of COVID-19, SINOSURE has taken measures in the following aspects. First, we continued to publish information on trade-restricting policies across the world to inform companies. Due to the outbreak, many countries have adjusted their trade policies, including trade-restricting policies. So we published information about these policies and other industry information from major countries to inform our companies of risks. Second, we published reports on country risk ratings, evaluating country risk and sovereign credit risk of 192 countries and regions across the world to provide a reference for companies. Third, we helped companies retrieve their losses. Via over 300 channels, SINOSURE helped companies avoid defaulting, which saved nearly US$4 billion and retrieved losses worth US$300 million. In addition, we opened a "green channel" for companies to receive compensation and eased conditions to ensure companies were able to receive compensation efficiently. Last year, claims paid to enterprises totaled US$1.8 billion, up by 32%. The average time for the closure of short-term export credit insurance was cut sharply by 41%, marking a record low.
All in all, faced with complex environment of foreign trade and unprecedented risks and challenges, SINOSURE, as a policy-oriented financial institution, played a unique role in preventing risks, promoting financing, and ensuring stability in foreign trade and employment, contributing to the support of China's foreign trade and bucking the trend of recession. Thanks.
Guo Shuqing:
Sorry to interrupt. I think Mr. Song answered your question very well. They did a very good job last year. Under the pressures of the worst pandemic for a century, they supported businesses, especially micro and small businesses, in their foreign trade by underwriting 22% of China's exports. It was, of course, a measure under special conditions. Normally, people may wonder if the measure was a special support given by the government, and if it abides by the WTO rules or the rules of fair trade. I see a lot of foreign journalists here today, so I'd like to ask you this question for them.
Song Shuguang:
Export credit insurance is a tool to promote exports and overseas investment permitted under the WTO rules. Our company has been doing business under the WTO's requirements. Our three major goals are to effectively serve national strategies, support the development of enterprises and ensure financial sustainability.
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