Simple Underwriting Mode: Opportunities For Small Shoe Enterprises To Reborn

Reporters recently learned that, in the environment of frequent foreign trade risks, in order to support SMEs in Wenzhou to "go out", the small and medium-sized enterprises in Taiwan have established a simple underwriting mode for SMEs. So far, more than 100 SMEs have benefited, and the total loss has been 8 million 690 thousand dollars.

There are many foreign trade enterprises in Wenzhou, and a large number of them are small and medium-sized enterprises. But in the past, export credit insurance was biased towards larger enterprises. Take 2010 as an example, the number of enterprises that exported less than US $5 million in that year was about 3500, accounting for 80% of the total number of export enterprises, but less than 5% of them were supported by export credit insurance. The introduction of the "simple mode" is expected to create a "zero risk" environment for the small and medium-sized enterprises to export F, and support them to better develop the real economy.

"Zero threshold" is the biggest advantage of the simple underwriting mode. The head of Wenzhou's credit insurance company said there was no minimum limit for the annual export volume of the insured enterprises. By the end of April this year, a total of 137 enterprises with simple modes of insurance were being set up in China's Wenzhou office, focusing on electrical appliances, clothing, auto parts, shoes and glasses industry.

How to insure the simple underwriting mode of small and medium-sized export enterprises? In terms of specific operation, enterprises with simple insurance modes only need to declare the export situation to Zhejiang once a month, and they can claim losses directly after they are released. Moreover, enterprises can apply for indemnity to Zhejiang's letter insurance because of the business risks of foreign buyers' bankruptcy, delinquency, rejection and other commercial risks caused by political risks such as trade control, foreign exchange control and war in the countries where the buyers are located. The proportion of compensation can reach up to 80%, and the total amount of the indemnity can reach 30 times the insurance premium.

"This is due to the fact that most small and medium enterprises in Wenzhou do not have risk management departments or risk management and control personnel. Their insurance is bound to require simple operation." Credit insurance staff said that the customs data and the Department have been networked, and enterprises can complete the declaration only if they confirm the monthly export amount. In the past, enterprises must have an export ticket and declare one vote.

In terms of insurance rates, the discount between 0.11%-0.68% will be maintained according to the amount of risk guaranteed and the degree of security chosen by the enterprise.

Xin Bao also said that enterprises that had generally exported less than US $5 million a year could apply for a simple mode of insurance. This threshold will be greatly relaxed in the near future. In addition, the single compensation limit for enterprises will also increase from the highest 100 thousand US dollars to 150 thousand US dollars.