Increased exposure to Political and Credit Risk has become a significant reality for companies and financial institutions trading and investing overseas; as a result specialist insurance products are available to mitigate these exposures which can enable the confident pursuit of high return opportunities in frontier markets such as Africa, the Middle East, Asia and Latin America. Multi-year, non-cancellable policies can be arranged to protect against loss arising from all manner of trading and finance transactions as well as loss to fixed investments and mobile assets. Counterparty default and vulnerability to macro political events can be managed with a range of Political and Credit Risk insurance products.
These products protect against:
- Contractual Default including Non-Payment for goods or services supplied and Non-Delivery of good or services paid for in advance.
- Confiscation, Expropriation and Nationalisation including Selective Discrimination and Creeping Expropriation.
- Contract Repudiation and Frustration including Concession Agreement / Operating Licence Termination.
- Forced Abandonment or Divestiture.
- Deprivation (restrictions preventing the (re)export of product or equipment from the foreign country).
- Political Violence including War, Strikes, Riots, Civil Commotion and Terrorism (for more information click here).
- Currency Inconvertibility or Exchange Transfer moratorium preventing the conversion and transfer of monies in respect of accounts receivable, debt service and dividend remittances.
- Trade Disruption and Business Interruption.
- Non-honouring of Arbitration Award.
- Export/Import Embargoes (including those imposed by multi-lateral organisations such as the United Nations or European Union) or cancellation of export/import licenses by the government of a foreign country.
- Non-honouring of Letters of Credit and Guarantees.
- Calling of on-demand bid or contract bonds and guarantees for unfair or political force-majeure reasons.