International Cooperation

Reinsurance Network at Home and Overseas

Overseas Network(Short Term)

NEXI’s support was mainly focused on transactions from Japan to foreign countries such as export, outward investment and foreign lending. However, with more Japanese businesses expanding overseas, there has been a growing demand in recent years for our support for transactions conducted by their overseas subsidiaries, including domestic sales, exports and intermediary trades. To meet such demand, NEXI is providing a reinsurance scheme for protecting Japanese subsidiaries’ accounts receivable.

1. Fronting

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

Scheme Image
Fronting (ECIF)

Fronting(NTCI)

Fronting product line

Name Start of
service
Japanese Non-life Insurer
(Ceding Partner)
Location
Fronting
(ECIF)
2010 Mitsui Sumitomo
Tokio Marine & Nichido
Sompo Japan Nipponkoa
Singapore
Hong Kong
Fronting
(NTCI)
2013 Mitsui Sumitomo
Tokio Marine & Nichido
Sompo Japan Nipponkoa
Singapore
Hong Kong
Thailand
2016 Mitsui Sumitomo U.K.

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 that are not covered by European and U.S. private-sector insurers, or when the maximum liability is insufficient. This reinsurance scheme can support overseas subsidiaries’ exports, intermediary trades and domestic sales in about 100 countries where Euler Hermes, Coface and AIG are operating services.

Scheme Image

European and US private-sector reinsurance

Start of Service European and US private-sector insurers
(ceding partners)
Location
2013 EULER HERMES (private sector) 52 countries
2014 COFACE (private sector) 96 countries
2015 American International Group, Inc. (AIG) 62 Countries
2016 Tokio Marine HCC (HCC) 29 Countries

3. ECA Reinsurance

NEXI has a reinsurance agreement with each ECA in Asia to enhance their underwriting capacity. The increased capacity has brought more opportunities for the Asian ECAs to provide support for Japanese overseas subsidiaries.

Scheme Image

ECA Reinsurance

Start of Service ECA(Ceding Partner) Location
2004 ECICS Limited(ECICS) Singapore
2006 Export-Import Bank of Malaysia Berhad(MEXIM) Malaysia
2009 Asuransi Ekspor Indonesia(ASEI) Indonesia
2009 Export-Import Bank of Thailand(THAI EXIMBANK) Thailand
2010 Taipei Export-Import Bank of China(TEBC) Taiwan
2012 Hong Kong Export Credit Insurance Corporation(HKECIC) Hong Kong
2012 Export Development Canada(EDC) Canada

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.

One-Stop-Shop Reinsurance

Start of Service ECA(Ceding Partner) Location
2002 Servizi Assicurativi Del Commercio Estero (SACE) Italy
2002 Atradius Credit Insurance N.V. (ATRADIUS) Netherlands
2002 Ducroire / Delcredere (ONDD) Belgium
2003 EULER HERMES Germany
2003 Oesterreichische Kontrollbank Aktiengesellschaft (OeKB) Austria
2003 COFACE France
2004 Export-Import Bank of the United States (US EXIMBANK) USA
2004 FINNVERA PLC (FINNVERA) Finland
2005 Export Finance and Insurance Corporation (EFIC) Australia
2005 Compania Expanola de Seguros de Credito a la Exportacion (CESCE) Spain
2007 Swiss Export Risk Insurance (SERV) Switzerland
2011 Korean Trade Insurance Corporation(K-sure) Korea

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 the policy, NEXI is providing a variety of measures to promote SMEs’ international business. The enhancement of the SME support is based on the revised Trade and Investment Insurance Act in 2014 that has 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 has 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. NEXI’s offering of stable underwriting capacity has helped the domestic insurers to increase their capacity to underwrite risk in transactions with high-risk countries and more credit risk of buyers. Our reinsurance scheme will contribute to stable exports of SMEs that are using private insurance services.
NEXI will continue to actively promote SME business in the international market by strengthening our support system in cooperation with domestic private-sector insurers.

Scheme Image

Reinsurance contract with domestic insurers

Contract Year Insurer URL
July 2015 Mitsui Sumitomo http://www.ms-ins.com/news/fy2015/pdf/0907_1.pdf
December 2015 Tokio Marine & Nichido
February 2016 Aioi Nissay Dowa
March 2016 Sompo Japan Nipponkoa https://cciyutorisjnk.onlinecreditpolicy.com/