Political risk insurance from AIG can be tailored to cover an extensive range of overseas business: new or existing equity investments, cross-border loans, or contracts for good and services.
Cover is designed to protect insureds against losses that can result from various political perils, including:
The vast majority of businesses in today’s global market can benefit from opportunities outside of their home territory. Yet few businesses are comfortable with the potential losses that can result from the political risks associated with operating internationally. A foreign government’s action or inaction can result in loss of property, income or financial assets.
AIG provides Political Risk Insurance to help financial institutions and corporate clients mitigate political risks worldwide.
We assist global companies in managing their international exposures. With a client base that includes manufacturers, project developers and service firms, reassurance is provided through the AIG experience in political risk solutions.
Whether a company is entering an overseas market for the first time, or is an experienced multinational with extensive international activity, AIG can design a political risk insurance program that makes sense.
CASE SCENARIO #1
A European electronics components manufacturer with 85% of its income generated from overseas operations, approached AIG for help in managing its huge overseas exposure. AIG responded by issuing a single Political Risk Insurance policy covering potential losses to the company’s assets and income in over 30 countries. The 5-year policy is non-cancellable and the premium rate is fixed, giving the company long-term security at a predetermined cost. The policy is also flexible allowing for periodic adjustments to limits over the policy period to reflect fluctuations in exposure.
CASE SCENARIO #2
A small but experienced mining company with highly productive acreage in an African country sought to develop a mine. The investment required to develop the mine was steep relative to the company’s modest capital base. With AIG Political Risk Insurance, the company was able to achieve a complete financing solution. We issued one Political Risk Insurance policy to cover the investor equity interest, and a second policy covered bank financing for the project.
CASE SCENARIO #3
A prominent supplier of telecom equipment was competing for a large contract with a leading Latin American provider of integrated wireless communications services. The supplier was confident that it could meet the technical specifications of the bid, but was unable to offer competitive financing without country risk mitigation. With an AIG Political Risk Insurance policy in place, the supplier was able to secure the bank support needed for the transaction, provide the required financing terms and complete the sale.
You can be sure that you have a dedicated partner in AIG. We are focused in answering your insurance needs today and anticipating tomorrow’s. We aim for each client relationship to be a true partnership and will take on your challenges as if they were our own.
By meeting straightforward needs as well as solving complex issues, we make your confidence our number one priority.
AIG is a world leading property-casualty and general insurance organisation serving more than 70 million clients in over 160 countries and jurisdictions. With a 90-year history, one of the industry's most extensive ranges of products and services, deep claims expertise and excellent financial strength, AIG enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.