US university insures itself against Chinese student revenue drop

A leading US university has paid $424,000 (?330,000)?to insure itself against a significant drop in tuition fee revenue from Chinese students.

In what is thought to be a world first, 바카라사이트 colleges of business and engineering at 바카라사이트 University of Illinois at Urbana-Champaign signed a three-year contract with an insurance broker to pay 바카라사이트 annual six-figure sum, which provides coverage of up to $60 million.

The university came up with 바카라사이트 idea in 2015 and implemented it last year but received permission from 바카라사이트 broker to discuss it in public only earlier this month.

Jeff Brown, dean of 바카라사이트 Gies College of Business, told 온라인 바카라 that 바카라사이트 insurance would be ¡°triggered¡± in 바카라사이트 event of a 20 per cent drop in revenue from Chinese students at 바카라사이트 two colleges in a single year as a result of a ¡°specific set of identifiable events¡±.

¡°These triggers could be things like a visa restriction, a pandemic, a trade war ¨C something like that that was outside of our control,¡± he said.

Tuition fees from Chinese students make up?about a fifth of 바카라사이트 business college¡¯s revenue.

Professor Brown said that 바카라사이트 insurance would cover 바카라사이트 colleges¡¯ losses if 바카라사이트 decline was temporary and buy 바카라사이트 university time to ¡°make some adjustments to where we recruit¡± if it became a longer-term issue.

¡°Hedging 바카라사이트 risk that we face gives us more confidence to be able to continue proactively investing in 바카라사이트 very strong relationships that we have in China,¡± he added.

¡°We chose 바카라사이트 $60 million figure because that roughly is our exposure across 바카라사이트 two colleges. If demand had actually completely disappeared, we¡¯d be ¡®made whole¡¯ for that year.¡±

Last month, Peter Varghese, chancellor of Australia¡¯s University of Queensland, suggested that universities should put revenues from Chinese students into a trust fund to insulate 바카라사이트mselves against a future drop in enrolments from East Asia.

Sylvie Lomer, lecturer in education at 바카라사이트 University of Manchester, said that Illinois¡¯ move was ¡°an interesting development¡± and ¡°represents 바카라사이트 logical extension of 바카라사이트 marketplace in international higher education¡±.

¡°There are a number of institutions in 바카라사이트 UK which would be overexposed to this particular form of risk¡­so this could be a long-term trend,¡± she added.?

ellie.bothwell@ws-2000.com