Political Risks

Backed by more than 30 years of experience, AIG can provide tailored coverage that addresses the risks specific to your markets and line of business.

And while political climates may shift, with AIG, your coverage will remain non-cancelable and secure.

In today’s global market, most companies are aware of the potential benefits associated with exploiting opportunities in emerging markets. However they are also aware of the risks associated with operating in a foreign country and under a foreign jurisdiction.

There are good reasons why some companies are uncomfortable with taking on the risks associated with doing business in emerging markets.

These risks may include:

  • Failure of a sovereign entity to honor payment obligations under a promissory note, bond, loan, guarantee, or letter of credit
  • Financial loss caused by unilateral repudiation of a contract by a government buyer or supplier
  • Government buyer wrongfully calling on a guarantee or bond provided by the company
  • Inability to repatriate equipment once a project or contract is completed
  • Seizure or confiscation of owned or leased assets
  • Politically motivated violence that results in property damage, or evacuation and repatriation of the local team leaving valuable equipment behind
  • Inability to repatriate or convert currency earned in that country
  • Failure of a project company to honor its payment obligations to senior secured lenders pursuant to the terms of the loan agreement

Political Risk Insurance helps companies to trade or invest, internationally, confident that the political uncertainties of doing business in a foreign country are mitigated. 

Product details  

Suitable for exporters, importers, contractors, project financers, financial institutions, and companies with overseas risks, stock or equipment.