Press Release - MAY 03, 2019
AM BestTV at RIMS: Investors in Emerging Markets Are Embracing Political Risk Coverage, Say Panel
FOR IMMEDIATE RELEASE
OLDWICK - MAY 03, 2019
Jared Kotler, head of credit & political risk insurance (CPRI) practice, The Hartford, highlighted what type of political risk insurance coverages typically are available.
“There are a number of insured perils that are covered under a political risk insurance policy,” said Kotler. “These perils, such as expropriation, currency convertibility and political violence are typically not covered under a global property program for manufacturers or various types of investors with assets overseas. … If you are a company that has not invested in emerging markets in the past and are thinking about it or are concerned about your assets that are in emerging markets, this is the type of coverage for you.”
The panel also addressed the cyber and terrorist components to political risk insurance.
“On the terrorism side, cyber is proving to be a very effective way to impact, to get headlines and to disrupt,” said John Minor, director of crisis management and political risk, Aon Risk Solutions. “The challenge is how do you know if it is a terrorist or a government? Generally, if it is an attack that requires more resources, it is probably government. North Korea, Russia and China have been known to do cyber attacks. These countries are clear examples of governments using cyber to attack and create disruption. Unfortunately, our market does not yet have a good solution to address these risks.”
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