Political Risk Insurance (PRI)
PRI is a broad type of insurance that includes coverage for a company’s exposures overseas as well as contracts with foreign governments.
Investments and Physical Assets - When a business expands into a foreign market by way of a joint-venture or subsidiary it is exposed to a variety of risks:
- Confiscation/Expropriation/Nationalization/Deprivation (CEND)
- Political Violence (PV)
- Currency Inconvertibility / Exchange Transfer (CI/ET)
- Selective Discrimination (SD)
- Forced Abandonment and Forced Divestiture (FA/FD)
Each of these perils is distinct and requires a unique method for calculating an actual loss, so understanding the exposure is critical to determining the proper level of coverage.