Insurance against regulation or policy changes

In recent years, many large Chinese companies have been very active in overseas economies, including acquisitions and IPOs. Some business activities, especially some acquisitions, were forced to give up by foreign regulators and ministries. The uncertainties created by the regulators as well as the risk due to future policy and regulation changes lower the Chinese companies' expected returns. However, some insurance companies create services to back up these Chinese companies against such uncertainties. This is a very good thing for all Chinese companies which have global ambitions.

Such insurances will increase many Chinese companies' willingness to expand their businesses in a global scale and take worldwide financial activities including acquisitions, as such risk is lowered by the insurances provided and they may be able to find arbitrary opportunities. Therefore, maybe more companies will join into such activities, and some may previously have had no such need or willingness to acquire and now are considering acquisitions because of the available insurance service. The only risk that would be caused by the new service is the possibility of defaults by these insurance companies once the losses of this business are too high and the foreign governments support their defaults in order to save the insurance companies. 

For these insurance companies, there is definitely one direct and immediate benefit that the revenues of these insurance companies will increase sharply due to their increasing Chinese clients. I could imagine the recent financial reports of these insurance companies will be improved by the new insurance services they provide. Moreover, if they can correctly estimate the risk premiums of these investments, their risks are relatively limited. In addition, as this is not the only business sector they are doing, they have the abilities to pool the risk among all sectors inside their companies.

Overall, I think that many Chinese companies and other countries' companies, including some Russian companies, definitely welcome such insurance services. The US insurance companies are also benefits the new service they have created; however, some non-US insurance providers may have the risk that when the president-elect Trump announces very extreme restrictions on Chinese companies in the future, it will cause enormous losses in this new business sector and the providers are not likely to receive support from the US government.