Since 2006, it has been developing the classification rules of country and region risks. After eight years of continuous modification and improvement, it has established a whole set of country risk rating rules named “high-risk countries rating system (HRCS)”. The basic principles of the HRCS system are as follows: Firstly, comprehensively and extensively collect the country risks data to be assessed. Secondly, group the relevant information into ten specific rating indicators: international relations, bilateral relations, natural disasters, domestic situations, economic conditions, social security, traffic conditions, disease and medical care, business conflicts and terrorism attacks. Thirdly, according to the rating system rules, the level of country risk is based on the weighted total score calculated with the values assigned from the specific risk conditions. Meanwhile, the system will further calibrate the risk level according to the risk characteristics of the country to be evaluated and the previous underwriting experience. Finally, the countries in the world will be classified into category one to four according to the risk level (four of which are refusal countries), forming a classification table of country and region.

The classification rules of country and region have the following characteristics: First, the rules are specifically established according to the risk situation of China “going abroad”, which are closer to reality. Secondly, quantitative assessment criteria are introduced in the system, which reduces the effects of subjective factors and makes the rating more objective and reliable. Thirdly, we keep an eye on changes in international affairs, update the country risk situation in a timely manner, and provide customers with timely risk warnings, thus providing effective assistance for overseas business risk assessment. The country and region risk classification rules 2017 version cover a total of 231 countries and regions, which represent most countries in the world.

Through the formulation of risk classification rules of country and region, China Re Life has successfully undertaken a large number of overseas businesses and gained rich experiences in underwriting. For more detailed information, please contact us.