Political turmoil is costly. Unless you are fully insured
War, riots, coups, embargoes—the sort of political upheaval that once occupied statesmen, mercenaries and spies is these days also the concern of less swashbuckling figures in the world of finance. A band of corporate-risk officers, export managers and international bankers are looking to insurers to shield them from the financial consequences of political turmoil around the world.
Such cover would once have appealed only to the most intrepid enterprises: oil firms prospecting in the Niger Delta, or mining operations in dodgy corners of central Asia. But as companies push their business into ever more remote locales, so they have sought protection against more exotic risks. The dangers of politics now hang over companies as diverse as fruit growers in Latin America, film producers in Fiji and bankers in Dubai.
The Berne Union, a group that includes the 30 biggest public and private insurers in the field, says its members have over $113 billion in policies outstanding. Last year they wrote more than $44 billion in coverage, up from $37 billion in 2005.
See full Article.
Posts
