Political Risk

Cover is designed to protect insureds against losses that can result from various political perils, including:

• Confiscation, expropriation and nationalisation;
• Currency inconvertibility and non-transfer;
• Political violence, and
• Contract frustration.

A vast majority of businesses in today’s global market can benefit from opportunities outside of their home territory. Yet few businesses are comfortable with potential losses that can result from the political risks associated with operating internationally. A foreign government’s action or inaction can result in loss of property, income or financial assets.

Chartis provides political risk insurance allowing financial institutions and corporate clients confidently navigate the challenges of new markets and helping mitigate political risks worldwide, Chartis assists global companies in managing their international exposures. With a client base that includes manufacturers, project developers and service firms, reassurance is provided through the Chartis experience in political risk solutions.

Whether entering an overseas market for the first time, or an experienced multinational with extensive international activity, Chartis can design a customised political risk insurance program that meets each client’s needs.

Scenario One   
 
A European electronics components manufacturer with 85% of its income generated from overseas operations, approached Chartis for help in managing its large overseas exposure. Chartis responded by issuing a single political risk insurance policy covering potential losses to the company’s assets and income in over 30 countries. The five-year policy was non-cancelable and the premium rate was fixed, giving the company long-term security at a predetermined cost. The policy was also flexible, allowing for periodic adjustments to limits over the policy period to reflect fluctuations in exposure.  
 
Scenario Two
 
A small but experienced mining company with highly productive acreage in an African country sought to develop a mine. The investment required to develop the mine was steep relative to the company’s modest capital base. Political risk insurance enabled the company to achieve a complete financing solution. One political risk insurance policy covered the investor equity interest, and a second policy covered bank financing for the project.  
 
Scenario Three
 
A prominent supplier of telecommunications equipment was competing for a large contract with a leading Latin American provider of integrated wireless communications services. The supplier was confident that it could meet the technical specifications of the bid, but was unable to offer competitive financing without country risk mitigation. A political risk insurance policy assisted the supplier in securing the bank support needed for the transaction, providing the required financing terms and completing the sale.

For more information on Political Risk insurance from Chartis see the Product Brochure

• Political Risk Product Profile (.pdf 164 KB)

You can be sure that you have a dedicated partner in Chartis.  We are focused on servicing your insurance needs today and anticipating tomorrow’s.  We aim for each client relationship to be a true partnership and will take on your challenges as if they were our own.  By meeting straightforward needs as well as solving complex issues, we make your confidence our number one priority.

Chartis is a world leading property-casualty and general insurance organisation serving more than 70 million clients around the world. With one of the industry's most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.