| Credit Insurance is a kind of insurance product used by companies to managerisk, aimed at protecting safety of accounts receivable, as well as credit guarantee forfactoring. It has been widely used in Europe and America, while just coming intoinitialization in Chinese market. As Chinese trade volume is on continuous increase,China would become the most potential and biggest market for Credit Insurance. Tocredit insurers, credit risk controlling is one of the most important ways to ensureprofitability, and credit assessment is usually considered as core of risk controlling forcredit insurers. Because insurance coverage provided always depends on creditabilityof the buyer.Currenly, credit insurers has widely begun to apply credit assessment model.However, in Chinese market, traditional manual assessment methodology is still used,casuing rising risk controlling cost, and reducing efficiency of credit assessment.There are still serious problems in objectivity of manual ssessment methodology.Therefore, credit rating for buyer is usually influenced by subjective opinions ofanalysts, making it impossible to reflect real creditability of buyer. The use ofquantitative model is an efficient way to solve this problem, facilitating theimprovement of credit assessment efficiency, as well as its objectivity.In China, according to statistics of credit insurers, insurance coverage againstSME accounted for at least60%of total buyer portfolio. Thus, major buyers of creditinsurers are SME companies. Limited by access to financial and operationsinformation of SME, as well as the effectiveness, SSE SME would be taken asexample for empirical research. This paper plans to make linear regression for creditrating of X Credit Insurer, based on financial ratio assessment system required by XCredit Insurer. Finally, after proper adjustments upon coefficient of liner regressionmodel, this model would be used for credit rating, from the perspective of creditinsurer. |
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