An Examination of Price Insurance in International Transactions

Abstract

In today’s globalized world, with the expansion of international trade and increasing financial and legal complexities, ensuring the fulfillment of contractual obligations has become paramount. One of the most effective instruments in this regard is price insurance, which shifts the risk of non-payment from the parties involved in a transaction to insurance entities, thereby enhancing trust and facilitating smoother exchanges. As a form of guarantee contract, price insurance not only mitigates risks associated with financial non-performance but also stabilizes business relationships and improves cash flow. However, differences in the interpretation of laws and legal standards at both national and international levels pose significant challenges to the optimal implementation of guarantee insurance. Moreover, economic volatility, rapid market fluctuations, and uncertainties stemming from regional political and economic conditions underscore the necessity for innovative solutions within insurance systems. From a technological perspective, the adoption of tools such as blockchain and artificial intelligence for transparent transaction recording and financial data analysis can greatly enhance the efficiency and oversight of insurance contracts. These innovations provide access to real-time, accurate information, minimize human error, and increase the level of confidence between contracting parties. Ultimately, price insurance, through the integration of legal, economic, and technological approaches, holds the potential to establish a transparent and secure transactional system. As a key instrument for risk mitigation and confidence-building in international transactions, it can play a vital role in the sustainable development of global trade. Consequently, the need for up-to-date and harmonized policies in this field is more critical than ever.