What exactly is export insurance agency business?

Export insurance agency is a professional service provided by institutions to enterprises forrisk management solutions, with two core protection systems:

• Credit insurance: Preventing commercial risks such as buyer bankruptcy and payment defaults
• Cargo insurance: Covering accidental losses during transportation (e.g., maritime accidents, theft)

According to 2023 General Administration of Customs statistics, enterprises using export insurance saw a 72% reduction in bad debt occurrence, fully demonstrating its risk mitigation value.

Must foreign trade enterprises purchase export insurance?

Although not legally mandatory in China, insurance is strongly recommended in these cases:

• New clients for first-time cooperation
• Transactions using open account (O/A) settlement
• Orders with goods value exceeding USD 100,000
• Shipments passing through conflict zones or high-risk areas

Case study: In 2024, a machinery exporter suffered USD 1.8 million payment loss due to Brazilian buyers bankruptcy without credit insurance coverage.

How are export insurance agency fees calculated?

Professional agencies typically adoptdynamic rate models:

• Base rate ranges:
  • Credit insurance: 0.3%-1.2% (based on annual turnover)
  • Cargo insurance: 0.08%-0.25% (based on goods value)
• Risk adjustment factors:
  • Buyer credit rating (AAA-D grade)
  • Transport route risk level
  • Industry risk category

How to choose reliable export insurance agency companies?

Recommend evaluating service providers through three dimensions:

• Underwriting capacityDoes it have international certifications such as Lloyd's?
• Claims efficiency: Average claims processing cycle (quality agencies typically within 30 working days)
• Value Added Services: Whether providing supplementary services like buyer credit investigation and risk alerts

Notably, the 2025 revised International Trade Insurance Service Standards have added digital service requirements, recommending priority selection of providers with intelligent risk control systems.

What key points should be noted for export insurance claims?

To ensure smooth claims, pay attention to:

• Document Preparation:
  • Original bill of lading/shipping document
  • Commercial invoice and packing list
  • Accident assessment report (requires third-party notarization)
• Time requirements:
  • Cargo damage must be reported within 3 working days after delivery
  • Credit insurance claims must be filed within 90 days of overdue payment

In 2024, a textile exporter had a USD 320,000 cargo damage claim rejected due to untimely submission of original B/L, serving as a profound lesson.

How can SMEs reduce insurance costs?

Recommended strategies:

• Customs inspection basis:Combined insurance packages(Credit + cargo insurance enjoys 15% discount)
• ParticipateIndustry joint guarantee program(Such as electromechanical product export alliance insurance)
• 15. UtilizeGovernment subsidy policies(Many regions will continue 30%-50% premium subsidies in 2025)

A cross-border e-commerce enterprise reduced annual premium expenditure by 28% through combined insurance solutions while expanding coverage by 20%.