What is Political Risk Insurance (PRI)?
Political Risk Insurance is a product used by many multinational corporations and banks to protect their assets or investments from political events around the world. When operating in Emerging Markets, your assets and investments are often not properly protected by your standard Property/Casualty insurance policies. Political Risk Insurance products are designed to address many of the risks that are routinely excluded from your P&C insurance coverage.
To protect your asset or investment located in a foreign country, you need to insure against the risk of:
• Government confiscation, expropriation, nationalization.
• Deprivation of your rights to operate normally by the local authorities.
• Breach of Contract by a local government or authority.
Also, there are other “political” risks that can put both your physical assets (property & stocks) and investment (cash) at peril, such as:
• Riots
• Strikes
• Insurrection
• Rebellion
• Malicious Damage
• Civil Commotion
• Revolution, Coup d'état
• Terrorism
• Political Violence
• War & Civil War
All of these potential risks can be insured through the Political Risk Insurance Market. Do not make a mistake in assuming your current property policy provides coverage for these risks.
Why Buy PRI?
Political Risk Insurance is a product that is used by corporations that already have assets in Emerging Markets or are looking into new investments. Political Risk Insurance is a cost effective way to protect your assets and facilitate safe growth in risky markets.
For many prudent, innovative and creative companies, Political Risk Insurance is an integral part of their overall insurance portfolio. A properly written PRI policy can be a valuable component in the overall corporate strategy of the Insured.
Some industries are highly reliant on physical operations located in politically volatile Emerging Markets. Political Risk Insurance is used in these situations not only as a risk mitigant but also to protect the shareholders, financial partners and investors against an unforeseen loss in value due to a hostile political event.
Let the experienced professionals at EIA-Global use their expertise to put Political Risk Insurance to work for your company or bank and help facilitate your growth, in a safe, tested and efficient manner.
Who Buys PRI?
Political Risk Insurance (PRI) and Political Violence (PV) are used by corporations or banks that operate in, or own physical assets in, politically unpredictable Emerging Markets. These entities use the PRI insurance products to mitigate the financial risk of hostile actions by local governments or other political groups that act aggressively against their assets.
Typical buyers of PRI & PV policies range from high profile US and European multinational trading companies pursuing expansion in new business frontiers, to specialist firms that conduct much of their overall operations in Emerging Markets. Many industries use PRI & PV insurance including: mining companies, manufacturers, commodity traders, retailers, energy, and service providers.
Whether your company currently operates in Emerging Markets or is contemplating expansion into these countries, let EIA Global show you how to effectively manage these volatile political risks so that you can operate in these markets with confidence.
