Euler Hermes establishes joint venture for trade insurance in China
In a strategic move to bolster their presence in China's growing trade market, Euler Hermes and China Pacific Property Insurance Company (CPPIC) have announced the formation of a joint venture named CPPIC Euler Hermes. This partnership, which integrates the competitive edges of both companies, aims to provide exceptional value for clients and bring Euler Hermes' services to a wider spectrum of Chinese entrepreneurs and businesses.
With a combined history of over 120 years in trade credit insurance, the joint venture leverages Euler Hermes' global expertise in risk management with CPPIC's extensive local market knowledge. This collaboration is expected to result in a differentiating development in the trade credit insurance industry, addressing China's increasing demand for such products and enhancing risk protection for exporters and importers.
The joint venture, headquartered in Shanghai, will be managed by existing staff from both companies. The partnership marks a significant step in Euler Hermes' strategy in Asia, particularly in China, where it has been actively pursuing partnerships and expansions to strengthen its presence in key markets.
The news comes as sluggish trade growth is expected to lead to a 20% increase in business insolvencies in China in 2016. This joint venture is poised to address this challenge by offering tailored trade credit insurance products that support SMEs engaged in global trade, thereby stimulating cross-border trade.
The cooperation between Euler Hermes and CPPIC, the third-largest property and casualty insurer in China, is an investment and a strengthening of their existing relationship. The joint venture is expected to bring about increased competition and innovation in China’s trade credit insurance market, potentially leading to more tailored products that cater to the unique needs of Chinese businesses.
China opened its export credit insurance sector to private companies in 2013, indicating large untapped opportunities in the market. The joint venture will operate in China, focusing on credit insurance, and is likely to capitalise on these opportunities to capture growth in the expanding international trade and supply chains.
Monitoring announcements from both companies or regulatory filings within China for updates on this joint venture and its market impact is advisable, as there is currently limited publicly available detailed information specifically about the partnership in China’s trade credit insurance sector.
- By integrating Euler Hermes' global expertise in risk management and CPPIC's local market knowledge, the newly formed joint venture, CPPIC Euler Hermes, is anticipated to revolutionize the trade credit insurance industry in China, offering specialized products that support Small and Medium Enterprises (SMEs) participating in global trade.
- This partnership between Euler Hermes and CPPIC, the third-largest property and casualty insurer in China, not only indicates an investment in their existing relationship but also gears up for increased competition and innovation in China’s trade finance sector, potentially leading to the creation of customized products that cater to the unique needs of Chinese businesses.
