Credit and Political Risk

Flexible credit and political risk insurance

Faced with opportunities to grow and constant pressure to create shareholder value, multinationals are increasingly turning to the unique business opportunities found in emerging markets. In an effort to secure business development and financial security, global businesses seek alternatives for managing and mitigating credit and political risks associated with their customer portfolios. We specialise in creating customised policies for the market where your company operates by combining data analysis with a broad knowledge of international regulations and practices.

  • Our appetite

    • Expropriation
    • Political violence
    • Currency inconvertibility

    Non-Honouring of Sovereign Payment/Guarantee Insurance

    Covers financial institutions, contractors and exporters in the event of payment defaults by sovereign, sub-sovereign and/or state-owned entities in emerging markets. 

    Our coverage can apply to:

    • sovereign payment defaults under direct loans
    • loan guarantees
    • letters of credit issued by state-owned banks
    • sales contracts with state-owned or controlled businesses

    We collaborate with government investment insurers, private insurers, multilateral agencies, international banks and other organizations to help optimise policy terms, capacity and flexibility for our customers.

    Our success is grounded in three facets:

    1. Experience – Our knowledge of how businesses perform in emerging markets allows us to develop products relevant to their needs.
    2. Trading network – We’re a leading underwriter for political risk and trade credit insurance for investors, infrastructure developers, multinational exporters and international financial institutions trading in emerging markets.
    3. Relationships – Along with being a member of the Berne Union of public and private insurers and the ICISA, we enjoy relationships with a host of government export credit agencies.
  • Our solution

    Trade credit

    Available to exporters, banks, traders, manufacturers and other companies to help protect against default and insolvency risks from commercial or political risk events.

    We offer single debtor policies for medium term or individual credit risks, and policies up to seven years for extended or deferred payments.

    To enhance coverage terms, capacity and or flexibility, we collaborate with export credit agencies and multilateral institutions.

    Short Term Multi-buyer Trade Credit

    The volatility of global financial and political landscapes means that manufacturing and wholesale companies trading domestically face increasing risks. We work to mitigate these by covering non-payment of commercial trade accounts receivable from unexpected and catastrophic losses due to insolvency, protracted default and political risks.

    Key benefits:

    • Non-cancellable limits
      Our credit limits are in force for the duration of the policy period. Once a limit is approved, it cannot be withdrawn or reduced mid-term
    • Significant capacity available
      Up to USD $250 million policy limit of liability and up to USD $110 million per buyer per policy
    • Flexible coverage
      Available for both domestic and export sales
    • Flexible and customized underwriting approach
      Our policies are tailored to help meet the unique needs of your business profile and operating environment
    • Policy types
      Whole turnover (excess of loss), key account, single buyer, top up (excess of primary), multi-insurer syndicated programs and receivable purchase programs
    • Global capabilities
      Ability to roll-up international policies under one global policy or issue separate policies written on local or non-admitted Zurich entity paper

    Political risk

    With developing countries expected to expand economically at twice the rate of developed nations in the coming years the opportunity for substantial growth is clear. However, they also hold the potential for significant risk and volatility, making it more important than ever for large businesses to protect their balance sheets.

    We offer tailored political risk insurance expressly designed to meet the long-term needs of multinationals in emerging markets.

    We offer coverage for political risk insurance.

    In order to cover businesses confronting the risks of emerging markets, we produce detailed, country-specific foresight based on risk analysis. Policies are customized by the transaction to address risks arising from political events and can be produced on in a multi-country portfolio or on a project or contract-specific basis. Terms can extend up to 15 years, with capacity of up to USD $150 million per transaction.

  • Claims expertise

    Our dedicated claims experts, bespoke major loss and fraud protection teams are there from first call to final resolution, analysing and identifying future solutions.

    Take a look at Our Expertise page to find out more.