Political Risk Overview

Starr Companies offer a variety of specialist Political Risk coverages for a wide range of commercial clients and investors. We work closely with our policy holders and brokers to provide innovative solutions and service our clients' needs effectively.

Political Risk Insurance is designed to mitigate against the loss of assets, income, or property suffered by investors, lenders, and corporations in emerging markets due to political risk events. Foreign government actions and socioeconomic events can create a business environment that is unfavorable for foreign investors, exporters, and lenders, preventing them from taking advantage of commercial opportunities in emerging markets. These types of political risk events can be impossible to predict, and the consequential loss of assets and income that follows is often irreversible.

In order to address these risks, Starr provides insurance solutions for single-situation or medium to long-term exposures by relying on sound underwriting principles and in-house political and country-risk analysis provided by seasoned advisers within Starr’s Global Risk Intelligence group. Clients who partner with Starr to manage Political Risk exposures have unique access to these advisers as well as to Starr’s retained Crisis Management consultants.

As a global provider of Political Risk insurance, Starr understands the ever-changing risk environment of our industry.

Type of Coverage:

Starr’s Political Risk Insurance coverage is designed to protect an insured’s assets, income, and property,  which may include equity investments and cross-border loans. Our policies are tailored to each individual risk, which include:

  • Confiscation, Expropriation, Nationalization
  • Currency Inconvertibility / Exchange Transfer Risk
  • Forced Abandonment
  • Forced Divestiture
  • Selective Discrimination
  • Political Violence: War / Civil War, SRCC (Strikes, Riots, Civil Commotion), and Rebellion
  • Arbitration Award Default
  • Non-honoring of sovereign obligations
  • Contract frustration following political events
  • Wrongful Calling of on-demand contract guarantees and bonds

Insuring cross-border exposures for:

  • Corporates
  • Financial institutions
  • Traders
  • Project developers and contractors

Capacity:

Policy limits of up to USD 50m for any one risk with higher limits available through risk syndication. Policy tenors of up to 10 years with non-cancellable policy terms. Cover for Political Violence is available on a standalone basis with policy terms up to 3 years.