| Export credit insurance is an important tool to encourage the export trade. To encourage exports of foreign exchange, our country has also been supporting the development of the export credit insurance business. In 1988, China People’s Insurance Company set up export credit insurance department by the help of government. Since then, the export credit insurance in China began to develop. China’s export credit insurance has gone through three stages:the stage of the Chinese People’s Insurance Company, the co-operating stage of the Chinese People’s Insurance Company and the Export-Import Bank of China and the stage of the China Export Credit Insurance Corporation independent. Initially, export credit insurance in China’s development is relatively slow,because of the non-professional of the People’s Insurance Company of China and China Export-Import Bank and the Unclear division of labor. In 2001, China Export & Credit Insurance Corporation was established, which is wholly owned by the government,and is professional. Since then, China’s export credit insurance has development rapidly. Between 2001 and 2009, China Export & Credit Insurance Company underwriting 291.52 billion U.S. dollars, which has made important contributions for the development of China’s foreign trade.For existing international export credit insurance,There are five main model: Government setting up special institutions or the company of Wholly owned, Government setting up wholly government-owned limited liability company, the Government commissioning a private and the bank of import and export. China is the second:Government set up wholly owned company. In this mode, the export credit insurance company’s registered capital is all from the government. The business losses occurred in the process are made up by the state budget. The purpose of its business is to implement the state’s industrial, financial, foreign trade policy. In other words, China’s export credit insurance is not for profit, which is state monopoly model. This model, can take shape of the scale in the beginning. When national policy changes, China’s export credit insurance can be adjusted accordingly timely However, with the market economy develops, the drawbacks of this monopoly business model is increasingly apparent.China Export and Credit Insurance Corporation is exclusive monopoly.The drawbacks as follow:First of all, depending on the government forces, the consequence is the loss of efficiency. In this mode, the export credit insurance market inefficiencies eventually, lacking of motivation to innovate and competition in the pricing mechanism. So China’s export credit insurance rates compared with other countries are high, which make the result of lack of demand and the insured’s purchase enthusiasm. This monopoly mode, the company is regardless of profit or loss, because the state is responsible for company. Therefore, in china the coverage of the export credit insurance is single, and the services are poor. In addition, after the analysis of operating data, we can find that the profitability of export credit insurance company is also poor. Therefore, improving this monopoly business model is imperative.There is also a legal issue in the development of China’s export credit insurance. Observing the rest of the world, we can find that they set up the legal of the export credit insurance, and then set up an insurance agency. However, in china it is in contrast. Export credit insurance in China has developed more than twenty years, but the relevant laws are not setted. Over the past twenty years, the development of export credit insurance is depending on some notifications and regulations. These laws are not persistent, and generally provide export credit insurance business to run. But the notifications and regulations about the carriing details are not mentioned. Therefore, the pattern of China’s export credit insurance should be improved in the future, and the most important thing is that we should establish a special law.Studying the development of export credit insurance in the world, many countries have carried out market-oriented exploration. In the United Kingdom and France, for example, they release a short-term export credit insurance market. In French, the export credit insurance agency is COFACE. At first, it is owned by the State. However, after privatization, it is a private company. The French export credit insurance is currently commissioned by the Government for private sector. In COFACE, accounts are divided into national and proprietary trading. National accounts instead of the long-term national export credit insurance, guarantees, investment risk insurance, and foreign exchange risk insurance business. And the self-account is mainly engaged in short-term export credit insurance business. The operation of the two accounts is separately. National commitment to all the risks of national accounts. The company is responsible for commercial account. Two accounts used simultaneously, fully embodies the national policy and operational flexibility, which not only ensures the stability of national export credit insurance, but also reflects the profitability of private companies. This is a very good export credit insurance model exploration.Britain is another mode.The mode is that the states establish a specialized agency-the United Kingdom Export Credits Guarantee Board (ECGD). ECGD offer long-term export credit insurance, overseas investment insurance, and short-term export credit insurance. In the initial stage, ECGD set up "national accounts" and "commercial accounts." Among them, the "Business Account" is mainly short-term export credit insurance to carry out commercial operations in competition with other companies; and "national account" underwriting the risk of commercial companies unwilling to take. Since the two accounts exist, short-term insurance is not competitive with other companies. The profit of "business account" is not high. In 1991, "Export and Overseas Investment Act guarantees" reform the account, which re-established the position ECGD. It is service for the commercial supplement. ECGD underwriting long-term export credit insurance, investment insurance, and short-term insurance. There is a clear division of business between ECGD and commercial insurance company. Commercial insurance companies begin to provide profitable short-term export credit insurance. At the state financial support for export credit insurance businesses, ECGD encourage the country’s external trade. This clear division of labor model, not only greatly improves the enthusiasm of commercial insurance companies, but also guarantees the needs of the customer. Export credit insurance model is an innovation.On the following revelation of short-term export credit insurance market operation mode of British and French:the operation of short-term insurance is a product, when the market develops to a certain stage of economic.The development can not be done overnight, and can not be directly copied from other countries. In addition, the establishment of export credit insurance model should be supported by the legal system. China’s export credit insurance lack of the legal. The establishment of a specialized export credit insurance law is a priority. Finally, no matter what model, the development of export credit insurance need the national policy and funding support.On the above analysis, this paper provides some thoughts about the improvement of export credit insurance. By analyzing the short-term insurance, the short-term export credit insurance can be operated in market. First, short-term export credit insurance is available insurability. Second, the short-term insurance is profitable. Third, China’s land property, Huatai Insurance and other commercial property company have cooperated with foreign credit insurance. In the process of cooperation, the company accumulated some experience.We can see from above, there are conditions for short-term insurance in china. Therefore, this paper provides some recommendations. Firstly, made design about the short-term export credit insurance.Phase I:the type of China Export and Credit Insurance Corporation’s business is divided into two accounts:"national accounts" and "commercial accounts." "Commercial account" is service for short-term export credit insurance business, and other types of insurance are classified into "national accounts." "Business Account" is self-financing business, and,"State account" is operated by the state budget. Two accounts must be strictly divided. The regulatory bodies must audit and monitor accounts. Meanwhile, when some companies meet for contions, the company could try to operate short-term export credit insurance business. Encourage the cooperation with international export credit insurance companies. At this stage, export credit insurance company has played a guiding and supportive role, while the commercial insurance companies actively have to cooperate with all parties.Phase II:we should strip the business of the short-term export credit, and can set up a special company. The commercial insurance companies could operate the short-term insurance business. At the same time, we should encourage more commercial insurance companies to enhance market efficiency. The export credit insurance are rolled as policy insurance agencies, and its main role is to meet the national industrial, economic, and foreign trade policies. Thus, short-term insurance business should be separate. When the commercial insurance companies have accumulated some experience, we can encourage more companies to take part in the market. Thus, short-term export credit insurance market will be liberalized. Various commercial insurance companies compete with each other, which increase the types of insurance products and quality.Secondly, we must improve the legal system of export credit insurance.We should be issued an "Export Credit Insurance Act." The law can not only regulate the operation, but also regulate the operation of short-term export credit insurance. Specific export credit insurance system should include the general provisions of the insurance contract, rights and obligations. |
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