Political risk insurance for lenders

Political risk insurance for financial institutions

We specialise in providing political risk insurance to financial institutions around the world. We will invest the time to understand our client’s business in order to provide bespoke solutions to mitigate these risks.

Political risk insurance can help you:

  • Provide country relief
  • Improve deal economics

Political risks are inherently difficult to predict and past events are not a reliable indicator of what will happen in the future. Whilst lending to developing markets can offer attractive new revenue and margin opportunities it can also present a variety of political risks that are beyond the bank’s or investor’s control and can lead to borrowers failing to repay their loans.

Political risk insurance can protect financial institutions when the borrower or their operations are adversely affected by such political events. Borrowers can find themselves deprived of the use or benefit of their investments despite retaining title and access to their foreign investments.

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Areas covered

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

Who we serve

  • World leading banks and financial institutions
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Claims

We have a dedicated claims team available to help when a loss occurs. With over $1bn in credit and political risk claims successfully settled since 2008 we have a strong track record in dealing with the complex risks faced by banks globally.

 

$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?

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 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. 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.