XN000022-1985-01-14 — Page 6

MONDAY, JANUARY 14, 1985

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ECIC EXPECTS 'MODEST SURPLUS'

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THE HONG KONG EXPORT CREDIT INSURANCE CORPORATION EXPECTED A +MODEST SURPLUS+ AT THE END OF THE 1984-85 FINANCIAL YEAR,

YEUNG, SAID TODAY.

ITS COMMISSIONER, MR K.Y.

THIS WAS DUE TO THE RECOVERY IN EXTERNAL DEMAND FOR HONG KONG GOODS, LEADING TO RAPID GROWTH IN THE VOLUME OF THE CORPORATION'S BUSINESS, AND TO THE MARKED DECLINE IN THE INCIDENCE AND SEVERITY OF THE CLAIMS MADE ON THE CORPORATION, HE SAID.

THE WORST WAS NOW OVER, MR YEUNG SAID, IN A TALK ENTITLED +EXPORT CREDIT INSURANCE HOW IT FACILITATES EXPORTS,+ TO THE BANKING SYMPOSIUM 185, AT THE HONG KONG POLYTECHNIC.

THE CORPORATION, MR YEUNG SAID, HAD UNDERTAKEN A COMPREHENSIVE AND CRITICAL APPRAISAL OF ITS ACTIVITIES, AND OF THE NATURE AND LEVEL OF RISKS ASSUMED IN RECENT YEARS. AS A RESULT OF THIS, THE CORPORATION HAD DRAWN UP A THREE-YEAR CORPORATE PLAN CONTAINING FINANCIAL OBJECTIVES AND MEASURES WHICH, IF ACHIEVED, WOULD RESTORE IT TO A BETTER STATE OF FINANCIAL HEALTH.

THIS PLAN, HE SAID, HAD RECEIVED THE FULL BLESSING OF THE CORPORATION'S ADVISORY BOARD AND THE GOVERNMENT.

+THE CORPORATION IS NOW ACTIVELY ENGAGED IN PREPARING AND LAUNCHING MORE EFFECTIVE WAYS OF MARKETING ITS SERVICES.

OF REFORMING ITS PREMIUM STRUCTURE, OF IMPROVING THE SPEED

OF ITS UNDERWRITING, CLAIMS AND RECOVERIES OPERATIONS, OF MAINTAINING TIGHT CONTROL OVER OPERATING EXPENDITURE AND, MOST IMPORTANTLY, OF DIVERSIFYING OUT OF ITS STANDARD INSURANCE POLICIES IN A PRUDENT AND ORDERLY MANNER, HAVING REGARD TO THE CHANGING NEEDS OF THE EXPORTING COMMUNITY,+ HE SAID.

MR YEUNG SAID THERE WAS NEED TO INTENSIFY MARKETING EFFORTS. AND +MUCH MORE IMPORTANTLY, TO IMPROVE THE SPEED OF UNDERWRITING RESPONSE TO POLICYHOLDERS' APPLICATIONS FOR LARGER CREDIT LIMITS.

+IF ANY JUSTIFIED CRITICISM OF THE CORPORATION'S PERFORMANCE HAD TO BE SINGLED OUT FOR COMMENT, IT WAS THE SLOWNESS OF RESPONSE.

+CAREFUL RESEARCH HAS SHOWN THAT WHILE NEARLY 86 PER CENT OF THE TOTAL NUMBER OF CLAIMS STEM FROM CREDIT LIMITS OF UNDER $1 MILLION. THEY ACCOUNT FOR LESS THAN 29 PER CENT OF OUR CLAIMS EXPENDITURE, HE SAID.

TO IMPROVE ........