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Member, Beacon International Group, Ltd.
PICC Property & Casualty Co. is set to challenge the China Export & Credit Insurance Corp.’s (Sinosure) monopoly in the short-term export credit insurance business after becoming the first insurer to secure the Finance Ministry’s approval to provide short-term export credit insurance from Jan. 1, 2013, according to local media reports.
The move comes as the government looks to help Chinese enterprises facing difficult conditions in the export market by providing good export credit insurance policy tools, improved export credit risk protection mechanism and expanded insurance coverage. Foreign credit insurers are closely following the liberalization of regulations as it signals opening of the market, thus creating opportunity for foreign investment. However, the government is expected to gradually liberalize the export credit insurance market, given the high degree of technical difficulty.