Political Risk Insurance

The geopolitical risk environment is turbulent and changing quickly.  Regional conflicts, increased trade protectionism and nationalism, terrorism, restructured trade agreements, threatening nations, Brexit, and collapse of political systems are all events that can impact political stability.  Geopolitical instability creates uncertainty for investors, and potential losses for multinationals, lenders and contractors.

Political risks are those associated with changes that occur to a country’s policies governing businesses, as well as external factors that could affect businesses. 

Government policy risks include excessive or discriminatory regulations, expropriation of assets, breach of contract, industry / sector nationalization, changes to current regulations, inability to convert local currency due to currency controls, contract frustration, and sovereign default.

Non-commercial / external risks can include labor strikes, political violence, civil war, rioting, boycotts, and sabotage of company assets.

Political risk insurance helps investors protect foreign direct investments against political (country’s policies governing businesses) and non-commercial (external factors) risk in developing countries. 

900 West Valley Road, Suite 701 | Wayne, PA 19087
Tel. 484-595-0100 Fax. 484-582-0111

P.O. Box 3665, Tyger Valley, Cape Town 7536 South Africa
Tel. 072-308-1112

Specializing in Trade Credit Insurance, Political Risk Insurance and Capital Solutions