SCOR supports HKECIC in its inaugural trade credit coverage

SCOR supports HKECIC in its inaugural trade credit coverage | Insurance Business New Zealand

Reinsurance

SCOR supports HKECIC in its inaugural trade credit coverage

New product to support cross-border e-commerce trade

Reinsurance

By
Kenneth Araullo

Hong Kong Export Credit Insurance Corporation (HKECIC) has introduced its first trade credit insurance cover based on SCOR Smart Credit, an alternative data underwriting tool developed by SCOR Reinsurance Co (Asia) Ltd.

The new product aims to support cross-border e-commerce trade by offering protection for trade loans provided by FundPark Ltd. to Hong Kong registered merchants. This initiative is designed to facilitate SMEs’ access to trade financing, promoting their involvement in cross-border e-commerce.

SCOR Smart Credit is a data-driven underwriting engine that analyzes various data sources using an algorithm developed by SCOR. This approach speeds up risk assessment compared to traditional manual methods and enhances portfolio quality through improved efficiency, effectiveness, and consistency for the insurer.

George Leung, CEO of SCOR Reinsurance Co (Asia) Ltd, commented on the initiative, noting that assessing trade financing risk is challenging, particularly for SMEs whose potential might not be evident from financials or traditional risk factors.

“SCOR is pleased to collaborate with HKECIC and FundPark to develop this automated, data-driven underwriting tool that assists efficient and effective trade credit risk assessment and helps insurers and financiers seize opportunities in this undiscovered segment. We strongly believe in combining innovative solutions and solid partnerships to close protection gaps and support economies,” Leung said.

Terence Chiu, commissioner of HKECIC, also highlighted the significant growth of cross-border e-commerce trade in recent years.

“We are honored to have the opportunity to join up with key partners in the fintech industry and the re-insurance industry to take the lead in launching this innovative initiative, helping e-commerce merchant secure financing and the further development of cross-border e-commerce trade,” Chiu said.

Anson Suen, CEO and co-founder of FundPark, described the underwriting and reinsurance arrangement as a testament to FundPark’s proprietary risk management platform, AI technology, and overall track record.

“We are delighted to innovate with HKECIC and SCOR to bring to market a new and collaborative solution that further facilitates the provision of working capital to more merchants who may find it difficult to acquire financing from financial institutions,” Suen said.

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