Skip To Main Content

Political Risk

AIG provides tailored cover for financial institutions, investors, exporters, importers, corporates and state-owned companies that conduct business abroad, offering global, non-cancellable and multi-year political risk insurance policies.

Why Choose AIG for Political Risk Insurance

While pursuing opportunities in emerging markets around the world brings a range of benefits, operating in a foreign country also comes with serious risks.

A long-term provider of political risk insurance, we provide clients (and tenors) with stability, in-depth sector expertise, meaningful capacity and coverage for complex transactions.

The AIG Advantage

Where We Can Help

AIG Political Risk insurance is for international investors, corporates and state-owned companies, helping protect against the losses from political instability.

Appetite and Sweet Spots [PDF]

Long Track Record

Backed by decades of experience, AIG can provide a proven tailored coverage to investors, financial institutions, exporter, importers and corporate clients depending on political and credit risk needs.

Market Leading Capacity

Policy terms for up to 20 years, with limits of up to $150 million available for a single risk.

Bespoke Cover

Structured coverage to meet customers’ unique exposures and geographical position. For banks we are able to provide capital relief with a Basel III compliant non-payment policy.

Broad Cover

Coverage across trade and non-trade asset classes including term loans, revolving credit facilities, export finance loans and pre-export financings.

Political Risk Perils

Non-credit Political Risk protection for an extensive range of overseas exposures including equity investments, physical assets, cross-border loans, and contracts for goods and services.

Global Reach

Global product with underwriters based in various regions globally offering solutions to our clients who are global in nature too.

AIG Credit Solutions

AIG Political Risk insurance covers all types of losses due to political action and instability, so that corporates and financial institutions can lend, trade and invest in developing markets with confidence. 

Preference for insuring core financial institutions and multilaterals against non-payment by sovereign or sovereign-owned entities with a focus on:

  • Key infrastructure projects preferably with Export Credit Agencies
  • Amortising loan profiles
  • Top tier obligors in selected emerging markets 
  • Appetite for a wide range of secured and unsecured structures (loans, repurchase agreements, derivatives, asset backed lending etc.)

Preference for insuring top tier financial institutions against non-payment by corporate obligors with a focus on:

  • Ratings of between BB- and BBB+
  • Trade and non-trade related transactions
  • Appetite for a wide range of secured and unsecured structures (loans, repurchase agreements, derivatives, asset backed lending etc.)

Preference for insuring multinational corporates and lenders, mainly in emerging markets against named political perils with a focus on:

  • Institutions with long experience in emerging markets
  • Multi-country programmmes across varied geographies
  • Risks based in markets where we have experience/appetite

Preference for coverage at a senior debt level in project financing structures with a focus on:

  • Variety of industries with specific focus on power, renewable energy, oil & gas, infrastructure, transportation, telecommunications and mining (subject to AIG’s Environmental, Social and Governance (ESG) criteria)
  • Strong rated offtakers and reputable project parties involved
  • Risks based in sectors where we have specific knowledge and expertise

Preference for insuring excess of loss tranches with a focus on:

  • Pools of corporate credit exposure where the internal rating of tranche is BBB- and above. Project Finance possible with <20 years tenor
  • Underlying assets originated in the ordinary course of insureds’ business
  • Un-funded Significant Risk Transfer (SRT) tranches, with replenishment/eligibility criteria
  • Disclosed pools. Anonymised possible subject to criteria

Our Credit Leadership Team

Related Content

Latest News

Learn More

Global Specialty Products & Services

Learn More

Our Underwriting Sweetspots

Learn More