China Export & Credit Insurance Corporation
Encyclopedia
China Export & Credit Insurance Corporation (SINOSURE) is a major State Owned Enterprise controlled by China SASAC. It is the largest provider of Export Credit Insurance in China.
Sinosure was established in 2001 by merging the Export Credit Insurance Department of the People's Insurance Company of China
People's Insurance Company of China
People's Insurance Company of China Holdings Company is a state-owned company in the People's Republic of China. The holding company promotes its subsidiaries, PICC Asset Management Company Limited and PICC Property and Casualty Company Limited .PICC P&C is China's largest insurer of casualty...

(PICC) and the export credit insurance section of the China Export and Import Bank, as part of China's accession into the WTO.

The company is legally mandated to promote China's international trade and foreign investment, in particular the export of high-value added goods.

SINOSURE focuses on supporting SMEs (since 2005, even those with export volumes of under 2 million dollars a year) that are unable to bear the political
Political risk insurance
Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political conditions will result in a loss....

 and commercial risks of international trade. The company also provides coverage for foreign investment by Chinese companies, this time most often by large SOEs.

SINOSURE offers coverage against political risks, commercial and credit risks. This includes short-, medium- and long-term export credit insurance, investment insurance, bond and guarantee business, debt and capital retrieval business and credit assessment business. Investment guarantees cover political risks such as currency and remittance restrictions, expropriation and nationalization, sovereign breaches of contract and war.

Sinosure was hit hard by a classical example of political risk in 2011, when the uprising in Libya meant it must pay insurance claims of more than 1 billion dollars by 13 SOEs which had large ongoing investments in the country.

Since 2001, SINOSURE has supported 290 billion dollars worth of exports and investments, and facilitated 570 billion yuan of lending. In 2009 alone, the company insured 116 billion dollars worth of exports

SINOSURE also provides support for export financing. In March 2011, in reached an agreement with J.P. Morgan to provide a wide array of financial services to exporters, with SINOSURE covering J.P. Morgan's exposure.

In May 2011, the Chinese government decided to inject 3.1 billion dollars into SINOSURE, as part of its effort to improve the commercial viability of financial institutions.

Sinosure is a member of the Berne Union
Berne Union
The Berne Union, also known as The International Union of Credit & Investment Insurers, is the international organisation and community for the global export credit and investment insurance industry....

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