Reinsurance Network at Home and Overseas

Overseas Network(Short Term)

NEXI’s support is mainly focused on transactions from Japan to foreign countries, such as exports, outward investment and foreign lending. However, as more Japanese businesses expanding overseas, there has been a growing demand for our support for transactions conducted by their overseas subsidiaries, including domestic sales, exports and intermediary trades. To meet such demand, NEXI provides a reinsurance scheme to protect Japanese-affiliated companies’ overseas operations.

1. Fronting

Fronting is a reinsurance scheme under which insurance products are sold on behalf of NEXI by a primary insurer that holds a license to issue insurance policies overseas. The fronting scheme helps ensure stable insurance capacity by covering risks that would otherwise not be covered.
This scheme is an “All-Japan support program” offered by NEXI in close collaboration with overseas network of Japanese non-life insurers.

Nikkei Trade Credit Insurance (NTCI)

2. European and U.S. private-sector reinsurance

This is a reinsurance scheme that enhances underwriting capacity to offer coverage for risks in transactions in high-risk countries where European and U.S. private-sector insurers have limited risk appetite, or where the available limits are insufficient. This reinsurance scheme supports Japanese-affiliated companies’ exports, intermediary trades and domestic sales in about 100 countries where Euler Hermes, Coface and other insurers are operating.

Scheme Image

3. ECA Reinsurance

NEXI has reinsurance agreements with export credit agencies (ECAs) in Asia and other regions to complement the underwriting capacity of these ECAs. Through these agreements, the underwriting capacity of the partner ECAs has been enhanced, thereby expanding opportunities for Japanese-affiliated companies to utilize ECA insurance services.

Scheme Image

Overseas Network(Medium to long term)

1. One-Stop-Shop Reinsurance

NEXI has One-Stop-Shop Reinsurance Agreements with major overseas export credit agencies (ECAs) to cover risks in the Japanese export portion in a joint project with foreign companies conducted in a third country. For example, in cases where a Japanese company forms a consortium with a foreign company for export to a third country, the foreign company will conclude an insurance contract with their own country’s ECA for the total amount of export contract including the portion exported by the Japanese company. Then NEXI will provide reinsurance to the foreign ECA to cover the export portion of the Japanese company. This is called One-Stop-Shop because only a single application is necessary for the entire export project in which companies from a number of countries participate.

Domestic Network

1. Reinsurance with domestic private-sector insurers(SME support)

Supporting mid-sized enterprises and smaller businesses (SMEs) is one of the government’s key policies. Under this policy, NEXI provides a variety of measures to promote SMEs’ international business. The enhancement of SME support is based on the revision of the Trade and Investment Insurance Act in 2014, which enabled NEXI to underwrite reinsurance for export credit insurance policies issued by domestic private-sector insurers; previously, NEXI had only provided reinsurance for foreign insurers.
Following the revision, NEXI also created a reinsurance scheme in 2015 which provides a certain percentage of reinsurance coverage for export credit insurance policies issued by domestic insurers to support SME transactions. By offering stable underwriting capacity, NEXI has enabled domestic insurers to increase their capacity to underwrite risk in transactions involving high-risk countries and buyers with higher credit risk. This reinsurance scheme contributes to the stability of SMEs’ exports that utilize private insurance services.
NEXI will continue to actively promote SMEs’ international business by strengthening its support system in cooperation with domestic private-sector insurers.

Scheme Image