The great majority of Hong Kong exporters do not have credit insurance, but trade on an unsecured or letter-of-credit basis. The government-owned Hong Kong Export Credit Insurance Corp (HKECIC) is the main credit insurer, but its services have focused only on small- and medium-sized enterprises (SMEs).
HKECIC, established in 1966, provides export insurance against non-payment risks arising from commercial and political events. It covers exports to over 200 countries, avoiding only countries under UN sanction, and insurance is available for up to 90% of the exports’ gross invoice value. Over 90% of its insurable business is concentrated on short-term business with an issuance period of up to 180 days, but it considers medium-term projects lasting two to three years longer on a case-by-case basis.
