The 10 Most Common Misconceptions About Political Risk Insurance
-
Upload
jeremy-davis -
Category
Documents
-
view
154 -
download
0
description
Transcript of The 10 Most Common Misconceptions About Political Risk Insurance
![Page 1: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/1.jpg)
The 10 Most Common Misconceptions about
Political Risk Insurance
The GPRA Group
Rod MorrisInsurance Advisory Services
![Page 2: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/2.jpg)
About us
Political and Trade Risk Analysis
Insurance Advisory Services
Micro Political Risk Data Modeling
In-Country Support
![Page 3: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/3.jpg)
Vice President and Managing Director of Political Risk Insurance for Overseas Private Investment Corp. (OPIC)
Chief Regulator for Captive Insurance for the State of Arizona
Senior Vice President of CNA International and Risk Management Operations
Rod Morris
![Page 4: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/4.jpg)
Foreign direct investment risks
Economic
Social
Operational
Tax
Regulatory
Legal
Currency
Security
![Page 5: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/5.jpg)
Not to mention…
Political Risk
![Page 6: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/6.jpg)
Breach of Contract
Expropriation
Regulatory Change
National-ization
Currency TransferConfiscation
War/Terror/Civil StrifeProtectionism
Macro and micro risks
![Page 7: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/7.jpg)
7
Political risks of most concern to investors over the next 12 months (MIGA)
MIGA Data
0%
10%
20%
30%
40%
50%
60%
70%
Regulatory ChangeBreach of ContractT&CCivil DisturbanceExpropriationTerrorism/War
![Page 8: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/8.jpg)
Foreign investor losses over the past 3 years
MIGA Data
0%
5%
10%
15%
20%
25%
30%
35%
40%
Breach of ContractRegulatory ChangeT&CCivil DisturbanceExpropriationWar/Terror
![Page 9: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/9.jpg)
Common Approaches to Dealing With Political Risk
USEFUL BUT…INSUFFICIENT
Create joint venture or alliance with local company
Subscribe to sovereign risk reports
Establish relationships with government leaders
![Page 10: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/10.jpg)
Typical PRI Coverage
![Page 11: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/11.jpg)
Breach of Contract, Agreement or Concession
![Page 12: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/12.jpg)
Nationalization Confiscation Expropriation of Property
![Page 13: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/13.jpg)
Currency Inconvertibility
![Page 14: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/14.jpg)
Currency Inconvertibility
Wrongful Calling of a Performance Bond
![Page 15: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/15.jpg)
Denial of Justice
![Page 16: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/16.jpg)
Forced Divestiture
![Page 17: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/17.jpg)
WarTerrorism Civil Strife
![Page 18: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/18.jpg)
Insurable investments
Equity
Consigned equipment
Technical assistance
Bank loans
Capital markets
Oil & gas natural resources
Contractors and exporters
![Page 19: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/19.jpg)
PRI Misconceptions
![Page 20: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/20.jpg)
Loss From Regulatory ChangeLoss From Regulatory Change
![Page 21: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/21.jpg)
Terrorism Defined
![Page 22: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/22.jpg)
Fair Coverage
![Page 23: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/23.jpg)
Property & CasualtyVs.Political Risk
![Page 24: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/24.jpg)
Holes In Coverage
![Page 25: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/25.jpg)
Equity Protection
![Page 26: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/26.jpg)
Government Assistance
![Page 27: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/27.jpg)
Bad Debt
![Page 28: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/28.jpg)
Expropriation claim vs.Investment recovery
![Page 29: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/29.jpg)
Physical Taking of Property
![Page 30: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/30.jpg)
Recap
PRI is insurance, not a guarantee
Political risk can be mitigated but PRI is still evolving and misunderstandings are common.
Conduct independent political risk analysis
Re-evaluate current policies annually
Consult a professional, experienced advisor
![Page 31: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/31.jpg)
Questions
![Page 32: The 10 Most Common Misconceptions About Political Risk Insurance](https://reader034.fdocuments.us/reader034/viewer/2022052522/54bc38e64a7959aa378b45b2/html5/thumbnails/32.jpg)
Contact information
The GPRA Group
www.gpra-group.com
646 373 6277