1.The need to promote export trade.
Under the trend of global economic integration, international market competition is becoming increasingly fierce, and the buyer's market for international trade is gradually forming. In order to simplify procedures and reduce costs, importers generally try to avoid using letter of credit settlement methods. Some exporters, in order to win orders from importers, also agree to credit as a competitive condition. Therefore, credit sales are becoming increasingly popular in the international market. Meanwhile, due to the global economic recession in recent years, the credit of international enterprises has decreased, and the risk variables faced by export enterprises are increasing day by day. Some domestic export enterprises are afraid to use non letter of credit settlement methods due to concerns about credit or payment risks that may arise in the importing chamber of commerce, resulting in the loss of many trade opportunities in vain. According to data, on average 80% -90% of enterprises in Europe and America use credit sales, while the average credit sales rate of some enterprises is currently less than 20%. It poses a serious challenge to the foreign trade exports. Export enterprises urgently need to avoid various trade risks and ensure safe foreign exchange collection. Export credit insurance is undoubtedly a powerful tool for export enterprises to share their worries and solve difficulties.
2.The need to stimulate domestic consumers.
Generally speaking, economic powers can only take the initiative in economic development by following the path of domestic demand led growth. The outline of the "Tenth Five Year Plan" clearly proposes to increase the consumption rate of some residents from the current around 47% to around 50%. To achieve this goal, only by rapidly expanding the scale of consumer credit and transforming the consumption mode of residents from self saving lagging consumption to credit supported early consumption, can we enter the era of consumer credit. However, due to the lack of a comprehensive personal credit system and the low credit rating of borrowers, banks are generally hesitant to fully promote personal consumer credit, which leads to a significant gap between the actual scale and development requirements of consumer credit in the USA. Consumer credit guarantee insurance is an effective tool to enhance personal credit, help banks prevent and control personal credit risks, and thus increase the scale of consumer credit.
3.The need to promote the development of small and medium-sized enterprises.
Small and medium-sized enterprises are an important component of the national economy and play a role as social and political stabilizers for a country or region.
4.The needs of the insurance industry's own development.
The insurance industry serves economic construction, and the demand for risk transfer in the market is the driving force and source of its continuous development. In recent years, with the continuous increase of insurance market entities, market competition has become increasingly fierce. Only by actively seeking new demand growth points can we meet the internal requirements of the continuous expansion of the insurance market scale.
