THE ECONOMIC VALUE OF INSURANCE FOR AGRICULTURAL PRODUCTS EXPORTED TO THE CHINESE MARKET

Аннотация

Insuring Uzbek exporters or banks in contradiction of failure to accomplish contractual obligations is a common risk management strategy in international trade. This type of insurance, generally known as export credit insurance or else trade credit insurance, protects exporters and banks from financial loss caused by non-payment or shipment defaults by overseas consumers. By purchasing this type of insurance, Uzbek exporters and banks can mitigate their financial risks as well as improve their cash flow. It also enables them to expand their businesses by exploring new markets without worrying about the potential risks associated with international trade. However, it is important to note that such insurance policies often have certain limitations and exclusions. Therefore, it is advisable for Uzbek exporters and banks to carefully review the terms and conditions of the insurance policy before making a purchase decision. Furthermore, it is also recommended that they work closely with experienced insurance brokers who have extensive knowledge of the international trade landscape to select the most suitable insurance policy that meets their specific needs and requirements.