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Political Risk Insurance Solutions

Political risk insurance from AIG can be tailored to cover an extensive range of  overseas business activities: new or existing equity investments, cross-border loans, or contracts for goods and services.

Cover is designed to protect insureds against losses that can result from various political perils, including:

  • Confiscation, expropriation and nationalisation,
  • Currency inconvertibility and non-transfer,
  • Political violence, and
  • Contract frustration.

The vast majority of businesses in today’s global market can benefit from opportunities outside of their home territory.  However, few businesses are comfortable with the potential losses that can result from the political risks associated with operating internationally. A foreign government’s action or inaction can result in loss of property, income or financial assets. 

AIG provides Political Risk Insurance to help financial institutions and corporate clients mitigate political risks worldwide. We assist global companies in managing their international exposures. AIG's client base includes manufacturers, project developers and service firms, who all benefit from our experience in political risk solutions.

Whether your company is entering an overseas market for the first time, or is an experienced multinational with extensive international activity, AIG can design a political risk insurance program that makes sense for you.

CASE SCENARIO #1

A European electronics components manufacturer with 85% of its income generated from overseas operations, approached AIG for help in managing its considerable overseas exposure. AIG responded by issuing a single Political Risk Insurance policy covering potential losses to the company’s assets and income in over 30 countries. The five-year policy is non-cancellable and the premium rate is fixed, giving the company long-term security at a predetermined cost. The policy is also flexible allowing for periodic adjustments to limits over the policy period to reflect fluctuations in exposure. 

CASE SCENARIO #2

A small but experienced mining company with highly productive acreage in an African country sought to develop a mine. The investment required to develop the mine was large relative to the company’s modest capital base. With AIG Political Risk Insurance, the company was able to achieve a complete financing solution. We issued one Political Risk Insurance policy to cover the investor equity interest, and a second policy to cover bank financing for the project.  

CASE SCENARIO #3

A prominent supplier of telecom equipment was competing for a large contract with a leading Latin American provider of integrated wireless communications services. The supplier was confident that it could meet the technical specifications of the bid, but was unable to offer competitive financing without country risk mitigation. With an AIG Political Risk Insurance policy in place, the supplier was able to secure the bank support needed for the transaction, provide the required financing terms and complete the sale.

You can be sure that you have a dedicated partner in AIG.  We are focused on answering your insurance needs today and anticipating tomorrow’s.  We aim for each customer relationship to be a true partnership and will take on your challenges as if they were our own.

By meeting straight-forward needs as well as solving complex issues, we make your confidence our number one priority.

AIG is a world leading property-casualty and general insurance organisation serving more than 70 million clients in over 100 countries and jurisdictions. With a 90-year history, one of the industry's most extensive ranges of products and services, award-winning claims expertise and also financial strength, AIG enables its commercial and personal insurance customers alike to manage virtually any risk with confidence.

Liam Berry
Surety Manager
Phone:  +61 (0)2 9240 1815
Mobile: + 61 (0)481 438 374

For any enquiries about purchasing, renewing or making a claim on an AIG business policy, please contact your insurance broker or find a broker here.