Political Risk

HomeWhat We DoPolitical Risk

The knowledge and expertise within Lockton enables us to deliver bespoke Political Risk (PRI) solutions for all industry, lenders and traders alike.

For any company or financial institution trading or investing overseas, exposure to Political and Credit Risk are a significant reality of doing business. Preservation and management of capital, along with the protection of shareholder value, have become paramount. Specialist insurance products can help mitigate these exposures and Lockton is a market leading provider of transactional and associated advisory services in the field.

With strong relationships across this specialist marketplace, our expert team advises and arranges insurances for some of the world’s leading industrial companies, banks, oil producers, miners, exporters, construction companies and commodity traders.

We arrange protection for their overseas investments and trading activities as well as the finance that underpins them. Rather than being another cost of doing business, well structured insurance can add real value by facilitating finance or providing an extra layer of security for a deal that might not happen without it.

Lockton’s credit risk specialists are leaders in their field.”

Products

Asset Risk

  • Confiscation, Expropriation and Nationalisation
  • Forced Abandonment
  • Forced Divestiture (where an investor’s own government requires them to divest an asset in a foreign country)
  • Deprivation (restrictions on the export of product or equipment from the foreign country).
  • Selective Discrimination including creeping expropriation
  • Political Violence including War, Terrorism, Strikes, Riots and Civil Commotion

Contract Risk

We can arrange effective and affordable contract risk insurance cover for principals or lenders against all of the following exposures.

  • Contractual Default including loss caused by Non-payment for goods
  • Contract Frustration by the government of a foreign country
  • Embargo including UN or EU measures
  • Import / Export Licence Cancellation
  • War / Political Violence
  • Arbitration Award Default
  • Currency Inconvertibility/Exchange Transfer
  • Non-Honouring of Guarantee
  • Non-Honouring of Letter of Credit
  • Wrongful Calling of on-demand Contract and Bid Bonds
  • Fair Calling of on-demand Contract or Bid bonds following Political Force Majeure

Our Expertise

The Lockton Political and Credit Risks team is a market leader in its field with unrivalled depth of knowledge and experience.  Locktons PRI team handles in excess of USD75,000,000 of client premiums globally each year with an estimated gross insured exposure of USD10,000,000,000.

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