Zurich’s Emerging Markets Solutions group, the political risk and trade credit insurance unit of Zurich, has signed a memorandum of understanding with the China Export & Credit Insurance Corporation (Sinosure). This public/private collaboration will work together to provide insurance, co-insurance or reinsurance for transactions involving Chinese exporters to or investors in emerging markets, as well as for international trade and investment in China.
While export credit agencies traditionally assist their exporters and investors in finding business abroad, the Sinosure agreement with Zurich will also facilitate foreign investment in China through inbound investment insurance. Sinosure developed the inbound investment program to address the political risks associated with sub-sovereign entities, given the needs of foreign investors who are increasingly involved in infrastructure projects at the local government level.
Daniel Riordan, executive vice-president and managing director of Zurich’s Emerging Markets Solutions group, says: “Zurich is already a very active player in the political risk insurance arena in China. By partnering with Sinosure, particularly in adding its expertise and capability in taking sub-sovereign risks, we’vetaken a major step forward in meeting the needs of our clients.”
“We are delighted to have a partner that brings complementary strengths to Sinosure’s activities, both in terms of origination and underwriting/risk sharing,” adds Liang Zhidong, vice-president of Sinosure. “By adding Zurich’s reputation and experience in the field of political risk insurance underwriting, Sinosure will be able to more effectively assist Chinese investors seeking opportunities abroad, as well as foreign investors in China.”