Cabinet Decision on the Cabinet Order for the Partial Revision of the Order for Enforcement of the Trade and Investment Insurance Act
July 9, 2019
On July 9, 2019, the Cabinet decided to approve the Cabinet Order for the Partial Revision of the Order for Enforcement of the Trade and Investment Insurance Act.
The revision is to take measures for permitting Nippon Export and Investment Insurance (NEXI) to underwrite reinsurance covering the insurance for overseas investments as an insurance policy provided by insurance companies and other organizations.
1. Outline of the Revision of the Order for Enforcement of the Act
NEXI has been providing various types of trade insurance by itself for promoting the sound development of external transactions. In addition, it has also been providing a service in which NEXI underwrites the reinsurance covering the insurance provided by a private insurance company or other organization if a certain Cabinet Order stipulates that the insurance is necessary for promoting the sound development of external transactions.
In addition to these services, the revised Order for Enforcement of the Act is to expand the coverage of reinsurance that NEXI underwrites and to add to NEXI’s current services the provision of insurance for covering the damages which Japanese companies that have invested in overseas countries may suffer, caused by country risks, such as war, revolution or civil war, including terrorism, import restrictions, restrictions on exchange transactions, and natural disasters.
As private insurance companies have a limitation in underwriting country risks, Japan decided to adopt this new measure of the revision so that NEXI is permitted to underwrite the reinsurance of the insurance provided by insurance companies and other organizations for covering overseas investments by Japanese companies.
2. Future schedule
Promulgation and enforcement: July 12 (Fri.), 2019
Division in Charge
Trade Finance Division, Trade and Economic Cooperation Bureau