Political Risk
Emerging markets are becoming increasingly important as businesses look to alternative areas for growth. However, in these often less mature economies your assets, contracts and loans can be adversely affected by the actions of the incumbent or new governments in the country concerned or your own domestic government, or third party government. The range of possible actions that can be taken by foreign governments is very broad and often leads to increased costs, penalties, forced shutdowns, loss of profit or liquidated damages.

Government actions often lead to increased costs, loss of profit or liquidation damages

Unforeseen political events can lead to:
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Confiscation, expropriation or nationalisation of assets Imposition of export/import embargoes or cancellation of export/import licenses Physical damage to assets from political violence Termination of or default on contracts Non payment or moratorium due to exchange transfer and currency inconvertibility Non delivery/shipment of goods Calling of on-demand bid or contract bonds and guarantees for unfair or political reasons Forced abandonment or divestiture Non payment by government and/or government owned entities of trade related debt to financial institutions Non payment by private entities of trade related debt to financial institutions

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Flexible, tailored cover
Aon’s political risk experts ensure that risk transfer and management programmes respond in the event of adverse political actions, providing you with balance sheet protection and business facilitation. Insurance can be purchased on a stand alone basis, or within a tailor made portfolio to give you greater flexibility of cover. Cover is provided by multilateral agencies, government export credit schemes and the private sector. We can also review international projects, advise on political risk management