Small business insurance

 Insurance provides credit guarantees for small and micro enterprises, and enterprises can obtain bank loans based on orders.

 

The Insurance Regulatory Commission, together with the Ministry of Industry and Information Technology, the Ministry of Commerce, the Central Bank and the Banking Regulatory Commission, recently issued the "Guiding Opinions on Vigorously Developing Credit Guarantee Insurance Services and Supporting Small and Micro Enterprises", proposing to use credit guarantee insurance products as a carrier to give full play to the financing and credit enhancement function of credit guarantee insurance. , to alleviate the problems of difficult and expensive financing for small and micro enterprises.

 Credit guarantee insurance

What is credit guarantee insurance? For small and micro enterprises, credit insurance mainly protects them from risks caused by the breach of trust by the other party in their trading activities. Guarantee insurance can provide credit guarantees for small and micro enterprises to obtain credit loans from banks.

When small and micro enterprises are unable to repay the loan principal and interest, the insurance company will bear the responsibility to repay the bank, solving the problem that banks are afraid of lending to small and micro enterprises. problem.

 Insurance Regulatory Commission

Previously, director of the Property Insurance Supervision Department of the Insurance Regulatory Commission, said in an interview with the media that currently, the domestic insurance industry can provide  major categories and thousands of credit guarantee insurance products and small and micro enterprises in different industries, different risk categories, and different fields. Serve.

"Credit guarantee insurance is not a simple guarantee, it is actually a package of financial services."senior manager of the credit insurance department of Pacific Property and Casualty Insurance Company, explained that insurance companies should screen buyers for insured companies, consult on internal control risks, and help companies achieve "credit accounts" ”, Improving the cash flow of an enterprise is equivalent to being fully involved in the production and operation of the enterprise.

 Bank-insurance cooperation

This "Opinion" proposes to innovate insurance products, including: encouraging bank-insurance cooperation to provide more flexible loan guarantee insurance products for small and micro enterprises' loan repayment methods; encouraging insurance companies to target independent brands, independent intellectual property rights, and strategic emerging industries.

For small and micro enterprises such as industries, we will refine the risks of enterprises in operating loans, trade credit sales, prepayments, contract performance, etc., and innovatively develop personalized and customized credit guarantee insurance products.

the current exploration of many industries. "For example, credit insurance is provided to light-asset companies - when the company has intellectual property rights but no machines, factories or other collateral, banks are traditionally unwilling to grant credit. Insurance companies provide credit guarantees based on the company's future accounts receivable. ”

Economics and Business

Capital University of Economics and Business believes that the "Opinions" are forward-looking in innovating small and micro financial products. For example, "exploring the development of guaranteed loan guarantee insurance business for small and medium-sized enterprises by financing guarantee institutions", which is essentially a re-guarantee for guarantee companies. "This fully demonstrates the determination of relevant departments to solve the financing difficulties and expensive financing of small and micro enterprises." Tuo Guozhu said.

Conclusion

his "Opinion" clarifies that the development of credit guarantee insurance must "adhere to the principles of government guidance and policy support" and innovate business models. Encourage all localities to actively explore a cooperative business model with multi-party participation and risk sharing of "government + bank + insurance" based on local actual conditions, using insurance products such as credit insurance and loan guarantee insurance as the main carriers.

believes that if only banks and insurance companies were to do this business, it would not be difficult to solve the financing problem by purely commercial means. However, small and micro enterprises belong to a relatively high-risk group, the rates are relatively expensive, and the insurance premium is a considerable expenditure.