Middle East
Political Risk Insurance

Political Risk Insurance

Doing business with unstable countries entails not only economic risk, but also political risks that are difficult to calculate. The private insurance market also offers cover against political risks. Not only Lloyd’s of London but also internationally specialised insurers from various global markets offer political risk insurance designed to meet their clients’ needs.


Risks that manifest themselves during the manufacturing period and after delivery, or in respect of capital, holdings and investments abroad:

  • War / civil unrest
  • Import or export embargoes
  • Arbitrary termination of contract by a state purchaser
  • Withdrawal of license, loss of receivables through non-payment
  • Exchange, transfer and payment bans
  • Other arbitrary intervention by the state
  • Non-issue of a confirmed letter of credit
  • Unjustified drawing on bank guarantees made payable “on first request”
  • Nationalisation and confiscation by the sovereign authority
  • Expropriation of machinery and equipment
  • Revocation of rights of disposal
  • Transfer ban for investment income

Insurance cover

Over and above the largely standardised cover offered by the state, the private insurance market offers the following solutions and options:

  • Insurance of selected individual risks
  • Individualised cover
  • Calculation of risk-appropriate premiums
  • Willingness to cover unconventional risks
  • Independence of national restrictions

Aon will be happy to help work out the ideal solution for your business in this specialised field.

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