NEXI and Tokio Marine Nichido Complete Reinsurance Agreement for Sharing Risk on Overseas Investment Insurance
-First Reinsurance Agreement in Accordance with Revised Enforcement Ordinance of Trade Insurance Law-

August 7, 2019

Nippon Export and Investment Insurance

Nippon Export Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has complete reinsurance agreement with Tokio Marine & Nichido Fire Insurance Co., Ltd. (Tokio Marine Nichido).

The Cabinet Ordinance for Partial Revision of the Enforcement Ordinance of the Trade Insurance Law came into effect as from July 12, 2019, aiming to extensively supporting the overseas expansion of Japanese small and medium enterprises (SMEs).

Under the former law, cooperation between NEXI and private non-life insurance companies through reinsurance business had been limited for Trade Credit Insurance provided by them to Japanese exporters.

However, overseas investments by Japanese companies have been increasing lately, and it is expected that a further rise will be marked with growing overseas expansion of major companies, as well as of SMEs who are enthusiastic about exploring new business abroad. For a large number of Japanese SMEs operating their business nationwide, private non-life insurance companies are more easily accessible than NEXI, to seek advice on country risk of export destinations and other problems in overseas trading because such insurers have branch offices throughout Japan. Given such circumstances, the revision of the Enforcement Ordinance was adopted, and private non-life insurance companies became able to engage in the sales of Overseas Investment Insurance, especially targeting Japanese SMEs, with the support of NEXI reinsurance.

Under this newly established system, NEXI and Tokio Marine Nichido have concluded the reinsurance agreement as a first attempt, and starting on August 1, 2019, Overseas Investment Insurance can be offered at their branches. This truly is one form of effective public-private cooperation in line with the new system implemented by the Japanese government.

As a governmental financial institution of Japan, NEXI will continue taking proactive initiatives to widely support business projects of Japanese companies by expanding its network with other organizations through reinsurance business.

Contact: Overseas Investment Insurance Underwriting Group,
Underwriting Department
Tel: +81-(0)3-3512-7668