Research On The Insurance Application Of J Enterprise’s Overseas Investment Project Risk

Accompanied by the Belt and Road initiative and the thoroughly implementation of the Going-out Strategy,China’s overseas investment continues to grow.The Chinese enterprises also speed up their own oversea investment process.Those enterprises have the chance to meet with more fortune opportunities.While on the other hand,they are also facing big challenges and risks.To deal with unpredictable risks is in the 1^st priority for oversea investment projects.The profit of the projects could be protected only when the major risk is prevented.Company J is a local private business unit.Also,he is a typical representative of the oversea investment enterprises.In recent years,company J conducted Going-out project frequently,meanwhile,the company met with many risks and suffered from the capital loss in oversea investment.Company J becomes cautious and conservative in oversea investment.Under this situation,company J missed many profitable projects,and that really do harm to the company’s development.However,Company J is not familiar with the main risks existing in oversea investment process.He is eager to learn more about the oversea investment insurances.The oversea investment insurances are major part of the export and credit insurance products.As a policy-based financial instrument,nowadays the export and credit insurance pay more attention to support enterprises in Going-out instead of focusing on export business only.The export and credit insurance plays an important role in export financing,accounts receivable management and consultancy.However,there are still many oversea investment enterprises know little about the oversea investment insurance products or could not make full use of those insurance products.This paper uses case analysis method to study company J’s risks and possible insurance applications existing in oversea investment from the export and credit insurance’s point of view.The paper implements oversea investment and the theory of export and credit insurance to analyze Company J’s major risks.Then the paper chooses suitable risk protection and financing promoting insurance products to satisfy different oversea investment phases’requirements.When choosing risk protection products,the paper picks oversea investment stock right insurance and short-term export credit insurance to deal with political risk and credit risk.When choosing financing promoting products,the paper picks export buyer credit insurance and specialized contract insurance to deal with two financing risks in J’s project.To follow up,this paper recommends the flow chart of oversea investment insurance based on the insurance application’s process and result.1^st step is to do project’s feasibility research and planning.2^nd is to finish necessary national and international approval process.3^rd one is to make full use of the export and credit insurance product and raise up detailed application method based on company J’s condition.The typical research of this paper will be a useful reference for other oversea investment enterprises when utilizing the export and credit insurance.Other enterprises can refer to this paper to analyze their own risks in their oversea investment projects and find out suitable insurance products more efficiently.