Geopolitical risks have increased in complexity in recent years, challenging efforts to maintain project and business resilience. However, opportunities for growth remain plentiful across the globe. Multinational organizations and investors are increasingly making use of available data to understand risk trends, better protect their assets from political risk exposure, and secure capital and project returns.
Insurable political risks
Political risk insurance acts as a safety net against policy decisions or actions by a government or political forces, and the consequences of such actions, allowing companies and lenders to make business and investment decisions with increased confidence. It can cover risks such as the following:
- Political violence, such as war, coup d’état, insurrection, revolution, sabotage, strikes and riots, and terrorism, that cause physical damage to, or abandonment of, assets or operations and the related loss of business income.
- Expropriation by governments of assets or operations, including prevention of repossession of assets by creditors.
- Restrictions on the conversion of local funds to hard currency, or the transfer of funds offshore, as part of remitting dividends, debt service, or other cash flows generated in-country to an insured.
- Arbitration award default related to breach of contract by a government entity.
- Credit risks, such as sovereign non-payment.
Marsh’s global political risk team provides specialist advice and solutions to companies and lenders looking to improve the return on their investments, protect their assets, and unlock opportunities for growth.
By working with us, you can be better prepared to manage and recover from government actions or events that might affect your global assets and investments. Get in touch with our specialists to understand whether political risk insurance can help your business mitigate and manage your risks.