Political Risk Insurance Products
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Political risk in emerging markets
Listen to the expert views of Adrian Lewers of Beazley, Charles Berry of BPL Global, and Dan Smith of International Alert.
View "Political risk in emerging markets"
To view the video you will need to have Flash 8 or above on your computer. You can download this from the Adobe website.
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Coverage can be provided on each of the following:
Property Damage due to Political Violence
• Covers physical loss or damage to tangible assets due to Political Violence.
• Includes both war risk and terrorism in one policy.
• Can be extended to include Business Interruption.
Abandonment of Operations
• Covers abandonment of operations due to Political Force Majeure.
• Political Force Majeure includes both Political Violence and Foreign Government action.
• Recognizes that war, civil commotion, terrorism, etc., can cause a total loss even where no physical damage occurs.
• Foreign Government actions can include License Cancellation, prohibition of operations, etc.
• Sanctions coverage (actions of the investors government) can also be covered.
Confiscation/Expropriation
• Covers the taking over of the Foreign Enterprise or assets by the Foreign Government and other expropriatory action.
• Includes Forced Divestiture, where your own government requires you to exit from the Foreign Enterprise.
Breach of Contract
• The central risk for many infrastructure investments (power, water, roads, telecom's, etc.)
• A separate section of cover is required to cover Breach of Contract by the Foreign Government effectively.
Currency Inconvertibility
• Covers dividends, loan repayments or other capital remittances against currency inconvertibility and transfer risks.
Collectively, these coverage's provide a tried and tested integrated solution to the increased threat of political risk to overseas investments.
