Political Risk Management
Aon political risk experts use a combination of market experience, innovative analysis tools and tailored risk transfer programs to help you minimise and manage your exposure to risks.
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:
Confiscation, expropriation or nationalisation of assets
Export/import embargoes or cancellation of export/import licenses
Physical damage to assets from political violence
Termination of or default on contracts
Non-payment or moratorium due to exchange transfer and currency inconvertibility
Non delivery/shipment of goods
Calling of on-demand bid or contract bonds and guarantees for unfair or political reasons
Forced abandonment or divestiture
Non-payment by government and/or government owned entities of trade related debt to financial institutions
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.
Political Risks assessments
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.
Aon's Political Risk Map
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.