On The Construction Of China’s Overseas Investment Insurance System

Foreign investment insurance system, as an important legal means to protect and encourage their private foreign investment for capital-exporting countries, is commonly used in the world. It refers to a system that the capital-exporting country’s government provides guarantee or insurance to their foreign investors for political risks they may encounter. If the insured political risks happen and investor suffers losses, domestic insurance institutions compensate their losses.With the deepening of opening to the outside world, the contradiction between the expanding scale of Chinese foreign investment and the lack of foreign investment insurance system have become increasingly prominent. The majority of foreign investors urgently call for the establishment of foreign investment insurance system to provide more legal protection for their foreign assets.This article uses comparative research. The author highlights and analyses American, Japanese and German foreign investment insurance system, as well as international multilateral investment insurance system, and proposes the idea of the dichotomy of the insurance model, draws a general style of foreign investment insurance system in the international community. Finally, the author proposes path to construct our system. We should clear the nature of the system mode and adopt unilateral mode of foreign investment insurance to meet the urgent need for foreign investment. Through bilateral investment guarantee agreement, the International Multilateral Investment Guarantee system and China’s diplomatic protection, we can achieve comprehensive protection to Chinese foreign investors, while guaranteeing the realization of the national right of subrogation. On the set of the domestic insurance institutions, we should use the form of separation between the approval and implementation, so that we can make full use of existing institutional resources and experience (or save the cost of the transfer), but also achieve the purpose of mutual restraint and supervision. Insurance coverage of our foreign investment insurance should continue the international tradition, including foreign exchange risk, expropriation and war risks. On the other hand, it should take into account the changes of the political risk in the international community today, as well as China’s national conditions. New types of insurance should be developed. Underwriting conditions should reflect the proportionality and join the domestic system to the international system. The provisions about the insured should be more scientific, the insured capital and the host should not be strictly limited. Also, domestic insurance institutions should strengthen cooperation with MIGA, give full play to their respective advantages, and provide effective risk protection for Chinese investors to invest foreign, particularly in developing countries and regions through co-insurance, reinsurance.