Agency export,Why should we purchase Sinosure coverage?

Under the agency export model,Export enterprises effectively bear the transaction riskYet they cannot take out insurance directly. Purchasing Sinosure coverage through a qualified agency not only satisfies customs requirements for foreign-exchange collection and verification but also shifts losses from buyer default, political risk, and other perils to the insurer. The newly revised Measures for the Administration of Export Credit Insurance, effective 2025, explicitly require the agent to effect compliant coverage on behalf of the actual cargo owner.

Can an agency purchase Sinosure on behalf of a client?

According to the current policy of China Export & Credit Insurance Corporation,Only three types of entities are eligible to purchase export credit insurance.:

• Manufacturing enterprises with self-operated import and export rights
• Comprehensive foreign-trade service enterprises (licensed)
• Specific financial institutions (such as supply chain finance platforms)

An ordinary trade agency company must operate in the following manner:

• Partner with a licensed integrated foreign trade service platform
• Authorized for insurance by the actual exporting enterprise
• Adopt a back-to-back insurance model (subject to special approval)

How is the CITIC insurance fee calculated for export via an agent?

The 2025 Sinosure latest premium rate system comprises three key elements:

• Buyer's credit rating: Tier-A buyer fee ≈ 0.6%–1.2%
• Payment methods:
  • LC payment fee reduced by 15%
  • DP method rate increased by 20%
• Country Risk Rating: C-level national rates can reach 3.5%

Actual Cost = Invoice Amount × Base Rate × Adjustment Factor, subject to the real-time calculation of Sinosure’s underwriting system.

How to purchase Sinosure through an agency?

The standard operating procedure consists of five key steps:

• Qualification Review: Provide the agency company's business license, export contract, and buyer's credit report
• Scheme design: Determine the insurance coverage ratio (recommended not lower than 90%) and the payout ratio (typically 80–95%).
• System Entry: The agency uploads trade data via the EDI system
• Premium Payment: Settlement must be made using the insured entity's corporate account.
• Policy effective: E-policy issued instantly; paper policy delivered within 3 business days

What pitfalls should you watch out for when arranging export insurance through an agent?

2025 Industry Regulatory Focus Highlights Three Key Risks:

• risk of subject confusion: Ensure that the policyholder, shipper, and payee are consistent across all three documents.
• Quota Trap: Pay special attention to the validity period of the buyer's credit limit (usually 6 months)
• Exclusion Clauses: Common grounds for claim denial include:
  • Disputes over cargo quality (38%)
  • Third-party logistics issues (21%)
  • Unclear terms in trade contracts (17%)

What documents are required for a Sinosure claim?

Special documents required under proxy mode:

• Notarized Copy of Agency Agreement (Chinese-English Bilingual)
• Proof of Buyer’s Breach of Contract (to be authenticated by the embassy or consulate)
• Cargo Ownership Transfer Document (Ocean Bill of Lading + Telex Release Guarantee)
• Foreign exchange receipt (showing the actual settlement amount)

Starting in 2025, new rules for admitting electronic evidence will take effect; it is recommended to preserve electronic records such as WhatsApp chats and emails.

What preferential policies are available for small and medium-sized enterprises (SMEs) and micro-enterprises?

For companies with annual export volumes below USD 5 million:

• Premium subsidies can reach up to 60% (jointly subsidized by the provincial finance authority and Sinosure)
• Open a green claim-processing channel (average claim cycle shortened to 45 days)
• Free buyer credit investigation service (3 quota uses per year)

A declaration letter for small and medium-sized enterprises and tax payment proof must be provided, and the application should be submitted online through the Single Window.

How to choose a reliable insurance brokerage firm?

It is recommended to evaluate from four dimensions:

• License authenticity：Check the Registration Form for Foreign Trade and Economic Cooperation Enterprises
• Historical loss ratio: Provide claim cases from the past three years
• System connectivity capacity: Does it support direct EDI connection with Sinosure?
• Service Transparency: Whether the premium is disclosed in a split manner (benchmark rate + service fee)

The China Export & Credit Insurance Corporation (SINOSURE) officially launched the Agency Credit Disclosure System on its website in 2025; it is recommended to give priority to AAA-rated service providers.