The US International Development Finance Corporation (DFC) has provided $1bn in political risk insurance as part of a $1.53bn debt conversion project in Ecuador to unlock funding for long-term conservation.
Political risk
Chubb has formed a new terrorism and political violence team within its continental Europe, Middle East and North Africa (CEMENA) region, led by Becky Jarrold.
MSIG USA has hired Matthew Dunne as vice president and senior underwriter for political risk and credit.
The intensity of grey zone action looks like it will only increase in the near future, with WTW’s Sam Wilkin suggesting that commercial activity will continue to be directly targeted.
The cost of insuring against sovereign debt defaults has risen for Gulf states despite a reduction in the average global cost, according to Chaucer.
The “Cold War resurgence” across the geopolitical landscape has heightened both the exposure and the necessity of many insurance lines into 2025, law firm DAC Beachcroft has said in its insurance predictions for the year ahead.
Demand for insurance against cartels and other organised crime in Mexico is rising, with several industry sectors beginning to purchase the coverage as standard, according to Chaucer.
Tokio Marine Kiln (TMK) is leading a new $95mn trade disruption insurance facility, launched in collaboration with Convex and McGill and Partners.
Arch Insurance International has appointed Jelle Ouwehand as head of terrorism, political violence and war.
Conflict-affected areas now represent 4.6 percent of the entire global landmass – a 65 percent increase since 2021, according to Verisk Maplecroft.
The role of political risk and credit insurance in addressing climate change and nature loss is increasingly being demonstrated through sovereign debt conversions in developing nations, as seen in the most recent Nature Bonds project in The Bahamas, Axa XL’s Stuart Barrowcliff has argued.
Geopolitical tensions and uncertainty around future US trade and fiscal policies should be front of mind for P&C insurers, particularly in marine and credit lines, according to Swiss Re’s Jérôme Jean Haegeli.
Portfolio diversification into specialty lines has fuelled recent growth in the credit and political risk market, although challenges linger around the sector’s reputation in the wake of the 2008 financial crisis, according to Guy Carpenter’s David Edwards.
Credit, bond and political risk reinsurers are expected to build on the stabilisation of capacity seen throughout 2024 and hold their position at 1 January 2025 renewals,
Specialist credit and political risk insurance (CPRI) broker BPL has appointed Catherine Aubert as a director.
