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Political Risk

Political Risk

What is political risk?

Political risk describes a range of perils caused by:

  • the actions or inactions of the insured’s, or a foreign government
  • the actions of a third party country or supranational
  • war, unrest and political violence

Political risk may deprive a company of its assets, restrict its ability to fulfill a contract and / or prevent it from meeting loan repayments.  The range of potential scenarios is very broad but all could have a critical impact on the balance sheet.

Who needs political risk insurance?

Any organization with cross border interests in emerging markets is exposed to political risk.  Our clients include banks, investors, exporters, traders, contractors, projects companies, commodity dealers and manufacturers.

Our unique solution

We can assess the political risks in each of your operating territories, and review your international projects and contracts – helping you to properly quantify your exposure.

We then advise on the most effective political risk management programme - often combining insurance solutions with crisis management, evacuation and business continuity planning.  For some of our clients this means ongoing support, with consultants on the ground to implement plans and conduct regular reviews and scenario testing.

Experience and expertise that our clients trust

In 1972 the founders of the Aon team became the world’s first political risk brokers.  Built on a reputation for innovation and excellence, our team remains one of the strongest in the market.  It includes individuals who have joined Aon from several other leading broking houses – offering a broad range of experience and expertise.  We also have a dedicated, in-house claims specialist.

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