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International Credit and Political Risk

Overview

In today's economy it is more important than ever to seek opportunities on a global basis. As companies expand their operations, they need to understand and manage the unique credit and political risks that arise from international transactions. These risks can include political and economic instability, government intervention, insolvencies and defaults, and social and political discontent in emerging countries. The international credit and political risk coverages from Tokio Marine HCC - Credit Group can be an important part of an effective risk management program to deal with these risks. Our coverages allow companies to pursue opportunities globally, while managing the risks inherent in international business.

How We Can Help

Tokio Marine HCC - Credit Group provides insurance to protect against financial losses arising out of credit and political risks, as well as physical damage caused by acts of political violence for a broad spectrum of clients:

  • Overseas investors who face risks arising from government actions ranging from expropriation to forced sale or deprivation of their ownership rights or who could suffer acts of political violence (such as war, civil war, revolution, insurrection, sabotage, terrorism acts and strikes) targeting their physical assets. Property typically covered can include power plants, storage facilities, oil rigs and industrial plant and equipment.
  • Commodity traders dealing with oil, metals or other commodities are confronted with risks arising out of non-performance of their contracts such as non-delivery and/or non-payment by a contractual entity. They may also own or control stocks of commodities located in various countries and face the risk of confiscation, expropriation or deprivation of these assets by the foreign government.
  • Banks and financial institutions face the risk of non-repayment of their trade finance and structured loans. Banks could also encounter losses if a financial institution’s counterparty does not honour trade instruments such as letters of credit, or in the event of a call on a guarantee issued in favour or on behalf of their clients.
  • Contractors and other exporters of goods and services face risks of contract frustration on contracts signed with government agencies, municipalities and private companies worldwide. Cover can be provided to protect all advance, performance and retention guarantees (on-demand bonds) related to these contracts.

Exporters can be impacted by the non-payment of their receivables by any of their counterparties as a result of insolvency, protracted default or political risks. Multi-debtor trade credit policies are a key tool to manage these risks.

About Us

Tokio Marine HCC - Credit Group underwrites policies on a global basis from offices in London and New York. We offer capacity up to US$50 million maximum line on any one risk and policies with a tenor of up to 5 years for Credit Risk and up to a 7 year tenor for Political Risk.

We sell our products through specialist insurance brokers. We have long-standing and excellent relationships with all major broking organisations.

Tokio Marine HCC - Credit Group is part of the Tokio Marine HCC Group of Companies which has a Standard & Poor's AA- rating and offers the financial security required by our clients and their banks.

Learn more at our UK Trade Credit website.

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