{"id":7615,"date":"2022-02-01T10:36:01","date_gmt":"2022-02-01T15:36:01","guid":{"rendered":"https:\/\/latinamericasecurityreport.com\/?p=7615"},"modified":"2022-02-01T10:36:01","modified_gmt":"2022-02-01T15:36:01","slug":"going-out-guaranteed-chinese-insurers-in-latin-america","status":"publish","type":"post","link":"https:\/\/latinamericasecurityreport.com\/?p=7615","title":{"rendered":"Going Out, Guaranteed: Chinese Insurers in Latin America"},"content":{"rendered":"<div class=\"page\" title=\"Page 7\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium\" src=\"https:\/\/d3r93xcuyxibb4.cloudfront.net\/upload\/aa\/appimage\/post\/mCJNpr.jpg\" width=\"1920\" height=\"1231\"><\/p>\n<p>China\u2019s Belt and Road Initiative (BRI) is generally understood as an infrastructure initiative, delivering large scale transport and energy projects to Latin America and other regions. However, given the shifting focus of China\u2019s overseas engagement in recent years, it is better understood as a connectivity-enhancing venture\u2014still focused on infrastructure development, certainly, but also on making digital, people-to-people, financial and other connections across both developed and developing regions.<\/p>\n<\/div>\n<p>Having recently examined China\u2019s growing focus on forging <a href=\"https:\/\/www.thedialogue.org\/analysis\/chinas-local-level-activity-in-latin-america-and-the-caribbean\/\">people-to-people ties<\/a> in Latin America and the Caribbean, <a href=\"https:\/\/www.thedialogue.org\/blogs\/2021\/10\/what-motivated-chinas-covid-19-assistance-in-lac\/\">Health Silk Road<\/a> developments, and China\u2019s <a href=\"https:\/\/www.thedialogue.org\/blogs\/2018\/11\/chinas-transport-infrastructure-investment-in-lac-five-things-to-know\/\">transport infrastructure<\/a> interests in the region, the Inter-American Dialogue\u2019s <a href=\"https:\/\/www.thedialogue.org\/programs\/programs\/china\/\">Asia and Latin America Program<\/a> is pleased to offer new analysis of Chinese involvement in Latin America\u2019s financial services sector. <a href=\"https:\/\/www.thedialogue.org\/wp-content\/uploads\/2022\/01\/Chinese-Insurers-in-Latin-America-1.pdf\">This first<\/a> of three reports on the topic examines the extent and nature of Chinese insurance industry engagement within the region, as well as prospects for future activity in this area, whether in support of BRI expansion or in pursuit of greater market share in the region\u2019s growing life and non-life insurance industries.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h3><strong>KEY FINDINGS:<\/strong><\/h3>\n<div class=\"page\" title=\"Page 11\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"page\" title=\"Page 11\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<div class=\"page\" title=\"Page 5\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<div class=\"page\" title=\"Page 7\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<ul>\n<li><strong>China\u2019s growing overseas footprint has meant more risk exposure for its projects, companies, and workers.<\/strong> With this in mind, China\u2019s top planners have recently underscored the importance of enhanced insurance support for the country\u2019s overseas operations in recent five-year plans and in policies toward Latin America.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<ul>\n<li><strong>China\u2019s insurers have been strongly encouraged to mitigate trade risks through export credit insurance or tariff guarantee insurance, and to support the broader needs of the many Chinese companies developing the Belt and Road Initiative.<\/strong> With overseas interests in mind, China\u2019s 14th Five-Year Plan (2021\u20132025) and other policy documents promote a continued focus not only on \u201cbringing in,\u201d or allowing more foreign capital in China\u2019s insurance industry, but also on \u201cgoing out,\u201d or overseas investment.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"page\" title=\"Page 3\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<ul>\n<li><strong>China Export and Credit Insurance Corporation (Sinosure) was among the first of China\u2019s insurance companies to guarantee major Chinese engineering or construction projects and exports in Latin America.<\/strong>&nbsp;<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"page\" title=\"Page 11\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<div class=\"page\" title=\"Page 4\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<ul>\n<li><strong>In addition to Sinosure, other Chinese insurers have made recent inroads in the region, addressing the growing needs of Chinese companies through cooperative arrangements with Latin American insurers or acquisitions of international insurance companies.<\/strong> In other cases, Chinese companies have forged partnerships in reinsurance, joining Sinosure in supporting BRI-related infrastructure development across Latin America.&nbsp;<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"page\" title=\"Page 11\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<ul>\n<li>\n<div class=\"page\" title=\"Page 6\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p><strong>The extent to which China\u2019s major insurers will take advantage of growing demand in Latin America for life and non-life products is unclear, but there are nevertheless some signs of growing interest among Chinese providers.<\/strong> Also evident in recent years is a growing focus on providing risk analysis and rescue services for Chinese companies operating in Latin America and other regions.&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"page\" title=\"Page 12\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<div class=\"page\" title=\"Page 12\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<div class=\"page\" title=\"Page 8\">\n<div class=\"section\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p><strong>The nature of Chinese overseas insurance activity and BRI expansion in the region will of course be shaped by wide-ranging factors.<\/strong> Much will depend, for instance, on the extent of Chinese infrastructure companies\u2019 appetite for high-quality insurance products. The industries in which Chinese companies focus in the coming years will also shape their insurance needs. Looking ahead, possible changes in China\u2019s approach to project selection might generate greater demand for insurance guarantees from Chinese or foreign firms. At the same time, political and economic uncertainties in the region, climate change, and other factors could limit interest and capacity among the major insurance companies already operating in Latin America.<\/p>\n<p><em>&#8211; Margaret Myers, <a href=\"https:\/\/www.thedialogue.org\" target=\"_blank\" rel=\"noopener\">The Dialogue<\/a><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s Belt and Road Initiative (BRI) is generally understood as an infrastructure initiative, delivering large scale transport and energy projects to Latin America and other regions. However, given the shifting focus of China\u2019s overseas engagement in recent years, it is better understood as a connectivity-enhancing venture\u2014still focused on infrastructure development, certainly, but also on making&hellip;<\/p>\n","protected":false},"author":124,"featured_media":7618,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"fifu_image_url":"https:\/\/d3r93xcuyxibb4.cloudfront.net\/upload\/aa\/appimage\/post\/mCJNpr.jpg","fifu_image_alt":"Going Out, Guaranteed: Chinese Insurers in Latin America","footnotes":""},"categories":[189],"tags":[],"class_list":["post-7615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-borders-commerce"],"_links":{"self":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts\/7615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/users\/124"}],"replies":[{"embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7615"}],"version-history":[{"count":1,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts\/7615\/revisions"}],"predecessor-version":[{"id":7617,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts\/7615\/revisions\/7617"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/media\/7618"}],"wp:attachment":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}