Political risk insurance

Political risk insurance

Political risk insurance can help protect companies against the financial impact of adverse political events.

Political risks are inherently difficult to predict and past events are not a reliable indicator of what will happen in the future. While investing in developing markets can offer attractive new revenue and margin opportunities it can also present a variety of political risks that are beyond an investor's control and can quickly leave them facing loss.

A change of government could mean that an investor is deprived of the use or benefit of investments by means of confiscation. Licences being cancelled could deny a company the right to export its goods and political violence could see its plant destroyed or temporarily damaged and unable to operate. These types of risk can have lasting financial consequences that can be mitigated by purchasing a specialist political risk insurance.

Areas covered icon image

Areas covered

  • Confiscation, expropriation and nationalisation
  • Deprivation
  • Forced divestiture
  • Selective discrimination
  • Forced abandonment
  • Export embargo
  • Breach concession
  • License cancellation/revocation
  • War
  • Political violence (including terrorism)
  • Business interruption (BI)
  • Currency inconvertibility/exchange transfer
Icon image - Who we serve with this service

Who we serve

Any organisation:

  • Investing in emerging markets
  • Leasing equipment overseas
  • Negotiating contracts for goods/services to foreign governments or state-owned companies.
Icon image - Claims paid

Claims

We have a dedicated claims team available to help you when a loss occurs and have successfully collected over $1bn in credit and political risk claims since 2008.

 

$1.035bn credit and political risk claims paid since 2008

Graph showing $1.035bn credit and political risk claims paid since 2008

Source: Willis Towers Watson claims data

Why Willis Towers Watson?

We specialise in providing political risk insurance to companies operating around the globe. We will invest the time to understand client's business in order to provide bespoke solutions to mitigate these risks.

We have a reputation for innovation – we developed the first Political Risk captive and the first Basel II compliant wording and continue to adapt our products to meet the needs of our clients.

The experience and expertise of our people distinguish us from our competitors.  We recognise the power of thinking differently and so our people come from many different backgrounds including banking and underwriting. Each person brings a unique market insight to every transaction.

We have hubs in New York, London and Singapore that give us real time access to the more than 60 insurance markets operating globally. Working from a single profit-and-loss account our clients can be confident that the insurers we recommend are chosen solely on the merits of what they can offer.