Institution details
HKEC - Hong Kong Export Credit Insurance Corporation (HK ECIC)
Key facts
- Established in 1966
- Ownership: Public
Not Part of the OECD
Part of the Berne Union
- 2/F, Tower 1, South Seas Centre, 75 Mody Road, Tsimshatsui East
- +852 2723 3883
- https://www.hkecic.com
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | AA+ |
Country rating | S&P | Local currency | AA+ |
Products
- Comprehensive cover policy
- Contract cover policy
- Small business policy
- Cover on export services
Comprehensive cover policy
- Available to Hong Kong exporters and manufacturers who are the principal in the contract to cover export business on credit terms when goods are:
- Shipped from Hong Kong
- Transported directly from suppliers' countries to foreign destination even without passing through Hong Kong - Maximum insured amount: Up to 90% of contract value
- Eligible exports: Must come from Hong Kong, Mainland China, Indonesia, South Korea, Macau, Malaysia, Philippines, Singapore, Sri Lanka, Taiwan, or Thailand
- Availability: Date of shipment
- Credit period: Up to 180 days
- Cover: Commercial and political risks
- Premium rate: Calculated on the volume of insurable business, spread of risks, export destination, and payment terms
Contract cover policy
- Available to Hong Kong exporters and manufacturers; application can be completed over the phone
- Pre-shipment cover: For export business on credit terms or under payment terms of irrevocable L/C
- Post-shipment cover: For export business on credit terms with goods
- Shipped from Hong Kong
- Transported directly from suppliers' countries to foreign destination without passing through Hong Kong - Availability: Date of contract
- Maximum insured amount: Up to 90% of contract value
- Eligible exports: Must come from any of Hong Kong, Mainland China, Indonesia, South Korea, Macau, Malaysia, Philippines, Singapore, Sri Lanka, Taiwan, or Thailand
- Cover: Commercial and political risks
- Premium rate: Calculated on the volume of insurable business, spread of risks, export destination, and payment terms
Small business policy
- Available to exporting companies with annual turnover less than HKD 50 million for contracts of sale with overseas buyers
- Coverage:
- Pre- and post-shipment risks with maximum liability up to HKD 10 million
- Applies to domestic exports and re-exports from Hong Kong, and direct exports from places outside Hong Kong
- Selective cover for specific buyers or markets - Insured amount: Flexible range from 60% to 90% of contract value
- Shipment declaration: Per invoice or per the sum of invoice values reported once monthly per buyer
- Cover: Commercial and political risks
- Fees:
- Annual policy fee waived
- Premium discounted 20%
- Premium calculated on the volume of insurable business, spread of risks, export destination, and payment terms
Cover on export services
- Comprehensive protection to Hong Kong service sector companies rendering services to overseas clients on credit
- Cover commences when services rendered
- Maximum insured amount: Up to 90% of contract value
- Eligibility: All service contracts with credit up to 180 days
- Services categories covered: Freight forwarding, hotels, services for aircraft engine overhauls and general maintenance, testing and inspection services, construction services, travel agency, advertising, and management/consultation services
- Cover: Commercial and political
- Premium rate: Calculated based on volume of insurable business, the spread of risks, the client’s country, and payment terms
Modality | Tenor | Cover type | coverage |
---|---|---|---|
Insurance | Short/medium/long-term | Comprehensive | Up to 90% |
Performance highlights
What's new?
- In October 2021, HKECIC announced that it will launch the “Export Credit Guarantee Scheme” in 2022 on a pilot basis.
- In October 2021, to address credit limit requests that cannot be approved in full, HKECIC will implement “Differential Indemnity Ratio Arrangement” in 2022 to provide enhanced coverage to exporters under different risk situations. Policyholders will be offered higher cover automatically for credit limits up to HKD 5 million, subject to different indemnity ratio ranging from 60% to 90%.
- In December 2021, HKECIC will launch an upgraded online selfservice credit insurance platform, EC-Reach 2.0, together with additional online “Small Business Policy” and “Self-Underwritten Policy”(SUP).
- Medium- and long-term insurance to cover exports of capital goods can be provided for credit periods of up to 5 years, or even longer if required on an exceptional basis
- The agency aims to protect the environment and promote sustainable development of Hong Kong
- ECIC covers over 200 countries all over the world, except UN sanctioned countries
- Commercial risks covered: - Bankruptcy or insolvency - Payment default - Refusal to take delivery of goods
- Political risks covered: - Blockage or delay in foreign exchange remittance - Cancellation of import license - Import ban - Payment moratorium - War, revolution, riot, or natural disaster
- Premium rate: Free online quote through website
- Code of conduct rules