SCOR supports HKECIC in its inaugural commercial credit coverage
SCOR supports HKECIC in its inaugural commercial credit coverage
re Insurance
Written by Kenneth Arullo
The Hong Kong Export Credit Insurance Corporation (HKECIC) has introduced the first trade credit insurance cover based on SCOR Smart Credit, an alternative data assurance tool developed by SCOR Reinsurance Co (Asia) Ltd.
The new product aims to support cross-border e-commerce trade by providing protection for business loans offered by FundPark Ltd. For registered traders in Hong Kong. This initiative aims to facilitate SMEs’ access to trade finance, and enhance their participation 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 the risk assessment process compared to traditional manual methods and enhances portfolio quality by improving efficiency, effectiveness and consistency for the insurer.
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George Leung, CEO of SCOR Reinsurance (Asia) Limited, commented on the initiative, noting that assessing trade finance risks is a challenge, especially for SMEs whose potential may not be clear from financial statements or traditional risk factors.
“SCOR is pleased to collaborate with HKECIC and FundPark to develop an automated, data-driven underwriting tool that helps assess trade credit risks efficiently and effectively and helps insurers and financiers seize opportunities in this unexplored sector. We strongly believe in combining innovative solutions and partnerships,” said Leung. strong to fill protection gaps and support economies.”
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Terence Chiu, Commissioner of Hong Kong, also highlighted the significant growth in cross-border e-commerce trade in recent years.
“We are honored to have the opportunity to join key partners in the fintech and reinsurance industry to take the lead in launching this innovative initiative, helping e-commerce merchants secure financing and further develop cross-border e-commerce services,” said Chiu.
Anson Swain, CEO and co-founder of FundPark, described the underwriting and reinsurance arrangements as a testament to FundPark’s risk management platform, artificial intelligence technology, and overall track record.
“We are pleased to innovate with HKECIC and SCOR to bring to the market a new and collaborative solution that facilitates the provision of working capital to more merchants who may otherwise find it difficult to obtain financing from financial institutions,” Swain said.
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