Trade Credit and Political Risk Insurance
In the course of their daily business, many organisations having international operations are exposed to counterparty and country risk.
When trading with international partners or investing in operations abroad, your activity becomes subject to Political Risk. In a world where geo-political environment can be as unpredictable as they are devastating, it makes sense for an organization to obtain insurance to guard against political and financial risk associated with the same.
The rising demand for Political Risk Insurance (PRI) for equity investments is driven by heightened awareness of various risk levels and is supported by perceptions, and indeed incidence of political risks are on the rise.
There are also good reasons why some companies are uncomfortable with taking on the risks associated with operating in a foreign country and under a foreign jurisdiction.
These risks include:
- Financial loss caused by unilateral repudiation of a contract by a Government buyer or supplier
- Seizure or confiscation of owned or leased assets
- Politically motivated violence that results in property damage, or evacuation and repatriation of the local team leaving valuable equipment behind
- Inability to repatriate equipment once a project or contract is completed
- Inability to repatriate or convert currency earned in that country
- Government buyer wrongfully calling on a guarantee or bond provided by the company
UNISON has a team which focusses on Credit and Political Risk and enjoys strong relationship with all Reinsurers in this sector. UNISON also provides 'Credit Insurance' support to many large corporates domiciled in India and overseas.