Political risks are increasingly affecting investors operating abroad. Those dangers may require specific and ad-hoc insurance cover...
- More and more countries are exposed to political risks such as political change, unstable security, revolution and war. These may have significant consequences for investors operating an import-export activity or for those with a subsidiary abroad.
- In highly exposed countries, these risks vary widely. They may result in the expropriation of the investor, the nationalization of their company, discrimination, a trade embargo or loss of their export license. Although Swiss export risk insurance (SERV) covers certain political, transfer and del credere risks, as well as force majeure events, other risks need to be covered by private insurance.
- Private insurance can protect an investor's balance sheet in relation to its financial interests abroad. Such cover helps to reduce the strategic risk inherent in making a commitment or expanding in certain countries. It also reduces the financial risk for creditors, shareholders and the board of directors.
Various insurers and reinsurers specializing in insurance for very specific risks or risks not covered by standard insurance, help decision-makers find the right answers to their needs and to anticipate problems. The solutions offered are often customizable and subject to discussion on a case-by-case basis between the insurer and the investor. They can be adapted to a specific company, strategy, product or investment, for a predefined period which may be short or long depending on the project.
