With the inclusion of the renminbi in the Special Drawing Right (SDR), the pace of the renminbi’s internationalization has significantly accelerated. As the saying goes, “A stone from another hill can be used to polish jade.” In the coming period, the author will take global asset allocation as the theme and systematically explain various financial instruments for global asset allocation—such as overseas insurance, overseas stocks, overseas funds, and overseas trusts—enabling more investors to gain a deeper understanding of the specifics of overseas financial products.

　　Now, let’s get down to business and together unveil the mysteries of overseas insurance.

　　The official definition of insurance refers to a commercial insurance practice in which the policyholder pays an insurance premium to the insurer as stipulated in the contract, and the insurer assumes liability to pay insurance benefits for property losses caused by accidents that may occur as agreed upon in the contract, or to make benefit payments when the insured person dies, becomes disabled, or reaches the age or term specified in the contract. As the name suggests, overseas insurance is a financial instrument created by insurance companies based overseas and available for customers to choose from and trade in the insurance market.

　　The main characteristics of overseas insurance are as follows:

　　First, overseas insurance offers comprehensive coverage at low premiums. This is mainly because the premium rates—determined based on factors such as life expectancy, health conditions, and other risk factors—are lower than those in China. Moreover, since overseas insurance markets are mature markets that have been developing for hundreds of years, competition is intense and information is openly and transparently available. Such market competition drives insurance companies to go all out to meet their customers’ needs.

　　Second, overseas insurance provides global coverage and global claims processing. Insurance products sold overseas are available worldwide, and claims are processed globally as well. Take medical insurance as an example: it can provide comprehensive global medical coverage, ensuring that your medical expenses—whether incurred domestically or abroad—are promptly reimbursed.

　　Third, the overseas insurance industry adheres to a business philosophy of “strict underwriting and generous claims settlement.” The overseas insurance sector has developed into a highly mature industry. In addition to being subject to stringent government regulation, it also exhibits strong self-regulatory capabilities, ensuring highly standardized operations. Meanwhile, due to intense competition, most insurance companies adopt the business philosophy that “claims handling is equivalent to sales.” As a result, disputes are extremely rare.

　　Fourth, overseas insurance policies typically offer customers a choice of multiple international currencies, such as U.S. dollars and euros. This allows you to proactively set aside the appropriate funds if you’re planning to study abroad or purchase property overseas.

　　Although overseas insurance offers numerous advantages and distinctive features, investors should also take the time to compare different options carefully to avoid potential ambiguities in the product terms down the road.

　　For the renminbi to truly achieve its goal of internationalization, it must first attain full convertibility under both current and capital accounts. With the successive launch of programs such as Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and Hong Kong Stock Connect in recent years, we can anticipate that more high-quality overseas financial products will gradually take root and flourish in China in the future. Let’s embrace together this new era of global asset allocation and jointly share the new benefits brought by the world’s economic growth.