Hong Kong Export Credit Insurance Corporation (HKECIC) has introduced a new trade credit insurance solution based on SCOR’s alternative data underwriting engine, SCOR Smart Credit, aimed at supporting cross-border e-commerce trade.
This new product provides protection for trade loans granted by FundPark to merchants registered in Hong Kong. Its aim is to facilitate SMEs’ access to trade financing, thereby fostering their growth in cross-border e-commerce.
SCOR Smart Credit is an advanced data-driven underwriting engine that revolutionises digital underwriting by analysing data from various sources using an algorithm developed by SCOR. This approach accelerates risk assessment compared to traditional methods and enhances portfolio quality by improving efficiency, effectiveness, and consistency for insurers.
George Leung, CEO of SCOR Reinsurance Co. (Asia) Ltd., explains, “Assessing trade financing risk is never an easy task, especially when it comes to SMEs whose strength and potential may not be easily realised by looking at their financials or traditional risk underwriting factors.”
He continues, “SCOR is pleased to collaborate with HKECIC and FundPark to develop this automated, data-driven underwriting tool that assists efficient and effective trade credit risk assessment and helps insurers and financiers seize opportunities in this undiscovered segment. We strongly believe in combining innovative solutions and solid partnerships to close protection gaps and support economies.”
Terence Chiu, Commissioner of HKECIC, comments, “Cross-border e-commerce trade has been growing tremendously worldwide in the past few years. HKECIC is glad to collaborate with SCOR to offer a market first e-commerce trade insurance backed financing solution based on merchants’ alternative performance and operating data on specific e-commerce platform as primary consideration for risk assessment.”
Chiu adds, “We are honoured to have the opportunity to join up with key partners in the fintech industry and the re-insurance industry to take the lead in launching this innovative initiative, helping e-commerce merchant secure financing and the further development of cross-border e-commerce trade.”
Anson Suen, CEO & Co-founder of FundPark, highlights, “This first-of-a-kind underwriting and reinsurance arrangement is a testament to the strength of FundPark’s proprietary risk management platform, use of AI technology and overall track record. We are delighted to innovate with HKECIC and SCOR to bring to market a new and collaborative solution that further facilitates the provision of working capital to more merchants who may find it difficult to acquire financing from financial institutions.”
