Exporters seek more cover
The global financial crisis has prompted more local exporters to seek insurance to cover the risk of overseas buyers failing to pay up. The government-owned Hong Kong Export Credit Insurance Corporation said business totalled HK$64.15 billion for the year to end-March, up 36 per cent on the previous year. The corporation received premiums of HK$233.83 million, an increase of 25 per cent, while claims were HK$83.72 million, a drop of 17.4 per cent. Fourty-four per cent of claims involved default on payments by firms in the United States, followed by Germany, 10 per cent.