Political Risk & Credit
Insurance
Part of the
North America & International Specialty
Division
We provide an experienced and professional service for clients who
trade or operate internationally, focussing on innovative and
competitive insurance solutions tailored to the specific
requirements of the varied industry base of our clients.
Political risk and international trade credit insurance provides
protection for all manner of political and economic risks typically
excluded from general insurance programmes. It provides balance
sheet protection for international corporations, exporters, foreign
investors and lenders.
Coverage can include but is not limited to:-
Trade related or Contract Risks
Loss of contractural revenue due to:
- Early termination of contracts by
government owned or majority government buyers
- Frustration of Contacts due to government
interference or change of law or import / export embargo or licence
cancellation
- Non payment by government or majority
government owned buyers
- Insolvency or protracted default of private
buyers or suppliers
- The inability to convert local currency
into hard currency or transfer funds out of the foreign country
resulting in loss of revenue (currency inconvertibility or exchange
transfer)
- War, political violence and terrorism
- Wrongful calling of on demand contractual
bonds or guarantees
- Failure to deliver goods
Asset based risks:
- Loss of investment and related income or
Lenders interest due to
- Expropriation including creeping
expropriation of fixed assets and change of law by a foreign
government which deprives investor or owner of his
investment
- Confiscation or Deprivation of mobile
assets by a foreign government
- Selective Discriminatory acts by foreign
governments
- Cancellation or non–renewal of licences
essential for commercial operations overseas
- Forced Divestiture where your home
government forces you to divest without adequate compensation
- Forced Abandonment – necessary abandonment
of foreign assets as it becomes unsafe to operate
- Loss or damage to fixed and mobile assets
due to war ,civil war , political violence and terrorism
- Currency Inconvertibility or exchange
transfer