The Hong Kong Export Credit Insurance Corporation has no plans to increase insurance premiums amid the Middle East war, stating that it's unnecessary to hike premiums in high-risk situations, said Terence Chiu Man-chung, commissioner of the HKECIC.
Agnes Chan Sui-kuen, chairperson of the HKECIC advisory board, noted that Hong Kong's export business in the Middle East accounts for 2.5 percent of total exports and is not a major export destination, but the corporation will closely monitor the geopolitical changes to support businesses, while existing insurance policies for exporters in the Middle East will remain in effect.
Chiu also cited an example from last April when the HKECIC introduced immediate support measures and offered insurance coverage discounts to clients during the US tariff surge, which led to lower insurance premiums, contrary to the market's common practice of raising premiums with increasing risks.
Chan said the corporation's insurance coverage now spans over 200 countries and markets, with total insured business surpassing HK$2.45 trillion as of the last financial year, adding that the corporation has been expanding insurance policies and has recently introduced the market's first trade credit insurance cover based on alternative data underwriting to promote e-commerce business development.
She noted that the corporation is preparing for its SME Protect Plus pilot scheme mentioned in the Budget this year, with details to be announced in April. The scheme provides more comprehensive risk protection coverage to exporters, especially SMEs.
She said the corporation remains committed to adapting to global uncertainties by providing innovative services and more comprehensive protection to help small and medium-sized enterprises seize new opportunities and align with the National 15th Five-Year Plan.
Meanwhile, the HKECIC announced its launch of the 60th Anniversary Policyholder Reward Program, offering eligible policyholders a reward credit of up to HK$6,000.
The reward program will run from April 1 this year until March 31, 2027, requiring no application or registration. Eligible policyholders can earn the reward through direct deductions from their premiums, policy fees, or credit checking facility fees, according to the HKECIC.
Gloria Leung
