Political Risk Investment Insurance

Abstract

The crises that have occurred in Asia, Latin America, and Eastern Europe in the past eighteen months reminds investors that political and economic events do not merely have a potential to cause losses, but actually do cause losses. As the prospect of further aspects looms, investors are paying more careful attention to political risk assessment and management. This article discusses current developments affecting the political risk insurance market, particularly the various demand factors driving the market, some recent innovations, the increasing capacity, and the greater collaboration among private, national, and multilateral political risk insurance providers.