Innovative insurance concepts to protect your foreign investments
The political situation in a country can alter dramatically overnight. A change of government can suddenly mean you lose any possibility of managing, using or controlling your assets. Consequences of political change can include tax discrimination, an arbitrary refusal of concessions, a lack of access to labour or commodities and even expropriation or nationalisation.
Such situations can involve a huge loss in value for foreign investors, evenn threatening the very existence of their business. That’s because measures adopted by national governments are frequently directed against foreign companies.
Aon has developed appropriate solutions designed to protect your investments abroad. We work with you to develop insurance solutions tailored to your requirements. Depending on your needs, we can arrange cover of equity and loans (shareholder or non-shareholder).
Protection can even be specially extended to cover tangible assets such as buildings and machinery. The same applies to intangible assets such as concessions and licences. Existing investments can also be protected.
You can cover the following risks with the insurance concepts we have developed:
- Confiscation, expropriation, nationalisation, deprivation (“CEND” risks) or other acts by public authorities whose effects are comparable to those of expropriation.
- Currency inconvertibility and transfer restriction risks (“CI/TR” risks) in the event that a foreign central bank/government fails to release foreign currency in full or in part, even though the subsidiary/joint venture has deposited the countervalue in an account in local currency.
- Political violence, e.g. war on land, civil war, riot, civil commotion, strike, revolution, rebellion, terrorism and sabotage.
- Breach of contract by government agencies in the event of the breach of legally binding, expressly defined contractual commitments by government or state-controlled agencies.