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.