NEXI and Mitsui Sumitomo Insurance Complete Reinsurance Agreement for Sharing Risk on Overseas Investment Insurance
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has entered into a new agreement with Mitsui Sumitomo Insurance Company Limited (Mitsui Sumitomo Insurance) to share risk through reinsurance, on overseas investment insurance.
The Cabinet Ordinance for Partial Revision of the Enforcement Ordinance of the Trade Insurance Law came into effect on 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 framework had been limited for trade credit insurance provided directly through such insurers to Japanese exporters.
However, overseas investments by Japanese companies have been increasing lately, and a further rise is expected with growing overseas expansion of major companies, as well as of SMEs who are enthusiastic about exploring new business opportunities abroad. For a large number of Japanese SMEs operating their business nationwide, private non-life insurers are more easily accessible than NEXI when seeking advice on country risk of export destinations and other problems in overseas trading because such insurers have branch offices throughout Japan. Under these circumstances, the revision of the Enforcement Ordinance allows private non-life insurers to engage in the sales of Overseas Investment Insurance, especially targeting Japanese SMEs, with the support of NEXI reinsurance.
Also, it will become possible for Mitsui Sumitomo Insurance to sell NEXI Overseas Investment Insurance at their branch offices starting on February 1, 2020, in line with the conclusion of this reinsurance agreement under the new enforcement ordinance. For NEXI, this is the second reinsurance agreement concluded based on the new enforcement ordinance, following the first one signed with Tokio Marine & Nichido Fire Insurance Co., Ltd. Consequently, we will further reinforce our support scheme for Japanese companies. Our partnership with Mitsui Sumitomo Insurance through this agreement surely is one form of effective public-private cooperation that is in line with the Japanese government policies.
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 framework.
Overseas Investment Insurance Underwriting Group â Ą, Underwriting Department