Tomorrow
is today's business
Political Risk
cover
In a global environment marked by increasing political and economic uncertainty, it has become essential to secure your financial commitments internationally through appropriate insurance solutions.
Political Risk cover
What is Political Risk cover ?
Political Risk covers enable companies operating internationally to protect themselves against:
- state abuses,
- serious deterioration in the political and security environment,
- financial default by public or private debtors, in countries presenting a high level of risk.
Political and Commercial Risk covers for individual contracts
"Single Risk" insurance
These covers are intended for companies entering into contracts involving significant amounts, with:
- substantial production costs,
- long execution periods,
- a major financial risk for the exporter.
They cover in particular:
- interruption of contract performance,
- non-payment of receivables,
- calling of bonds, on contracts entered into with public or private buyers.
Financing associated with these contracts may also be covered, often in coordination with banking institutions.
Main events giving rise to a claim:
- financial default by the public or private buyer,
- inconvertibility or non-transfer of local currencies,
- actions or failures by foreign public authorities,
- laws, orders or decrees issued by local authorities,
- situations of war or civil unrest,
- abuses or failures by a public buyer.
Political Risk cover for assets
These covers are intended for investors acquiring assets abroad or establishing industrial or commercial activities there.
They complement property damage insurance and cover in particular:
- property damage and business interruption losses related to political violence (war, terrorism, sabotage, riots, insurrections, etc.);
- infringements of property rights: confiscation, nationalisation, requisitions, withdrawal of licences, selective discrimination;
- financial losses related to the inability to repatriate dividends or financial flows to the parent company.
Indemnifiable items (depending on the circumstances)
- net book values or replacement values of assets,
- costs of repairing damaged property,
- amounts not repatriated,
- lost operating profits.
- financial loss of invested capital
An extensive international insurance market
The covers offered by AU Group are underwritten by private insurers, as an alternative or complement to public schemes (Export Credit Agencies).
Policies are frequently structured on a co-insurance basis, including:
- credit insurance companies,
- property and casualty insurance companies,
- Lloyd’s syndicates,
- specialist underwriting agencies.
Cover periods generally range from 12 months to 7 years and may extend beyond this for certain specific financing arrangements (projects, sovereign loans).
Why AU Group?
Optimised cover through a specialist broker
AU Group uses its expertise to negotiate bespoke insurance policies, and adapt them to the legal, geographical and operational context of each project.
Thanks to our international network, we can also structure cover for entities located outside the European Union, in collaboration with local insurers.
Our approach
-
1
analysis and qualification of risks,
-
2
structuring of tailored solutions,
-
3
contractual negotiation,
-
4
risk placement,
-
5
policy monitoring and management,
-
6
support in the event of a claim.
Let's discuss your needs together
Find your nearest advisor
Where are you located?
Contact us directly
Our CSR commitments
AU Group is committed to developing a sustainable world and economy by respecting people and managing natural resources.
Careers
We regularly recruit new talent to continue our development. Join a team of experts and become part of an international group which cares about its employees.