Emerging markets continue to be attractive for businesses seeking alternative areas for growth. However, in less mature economies assets, contracts and loans can be adversely affected by government actions. Supply chains are becoming increasingly more vulnerable. Aon’s Political Risks Map noted an almost 50% increase in supply chain disruption due to government embargoes, interference and strikes, riots, and civil commotion.
Unforeseen political events can lead to:
A broad range of possible government actions that often lead to increased costs, penalties, forced shutdowns, loss of profit or liquidated damages.
Aon’s political risks experts design risk transfer and management programs to respond to adverse political actions, providing a combination of balance sheet protection and business facilitation. Insurance can be purchased on a standalone basis, or within a tailor made portfolio to give you greater flexibility of coverage.
Aon’s proprietary live rating guide, RateTracker, provides accurate, 10 year historic and current transaction costs, including rating and capacity data for more than 110 countries and 500 obligors. RateTracker not only provides valuable benchmarking information, but assists with projecting future risk transfer costs.
Aon’s unique PortfolioManager enables you to easily monitor your exposure to political risks. This online tool facilitates complicated data analysis in simple visual formats and downloadable reports.
PortfolioManager enables you to monitor on an aggregated and individual basis:
Aon political risk experts can also conduct political and security risk assessments of all the countries and regions in your portfolio, allowing you to make informed decisions regarding your operations and investments. Feasibility studies help underwriters understand your exposures – providing transparent submissions, resulting in comprehensive political insurance coverage with greater contract certainty.
The Political Risk Map is Aon's benchmark review of the political risks global corporations face. It provides an invaluable guide to political risk insurance markets' perceptions of key risks around the world. Specific risks featured in the map include government interference, legal and regulatory risks, sovereign non-payment and supply chain disruption.