In today’s uncertain political and economic environment, organizations with global operations are continually exposed to counter party and country risks. Every business can benefit from the leverage and protection given by the appropriate use of CPRI.
CPRI provides protection for all types of political and economic risks that are typically excluded from general insurance policies. It provides balance sheet safeguards for International Corporations, Exporters, Foreign Investors and Lenders.
South Western Group provides a professional service for Clients who trade or operate internationally, tailoring innovative and competitive insurance solutions to the specific requirements of the varied industry and unique individual needs of each client.
The Market divides CPRI into two distinct categories:
Trade Credit Insurance
- Comprehensive Non-Payment Insurance covers financial default of an obligor following either commercial or political events.
- Non-delivery Insurance covers loss resulting from a contract default/ termination where a pre-payment has been made for the goods/services.
- Pre/Post Shipment Insurance covers manufacturers against loss incurred following the cancellation of a contract pre/post shipment.
- Unfair Calling of Bonds covers against a bond being called where the Insured is not in contractual default or has been unable to fulfil their obligations due to political perils.
Non-payment insurance for banks
- Structured to fulfil credit requirements for capital management under Basel II/III allowing for the use of insurance as an alternative to syndication.
Political Risk Insurance
Covers exposure to unstable jurisdictions through direct investments, or by way of exposure as a Lender. Cover includes:
- Confiscation, Expropriation, Nationalisation, Deprivation (CEND
- Currency Inconvertibility and Transfer Risk (CI)
- Political Violence (PV)
- Operating Licence/Concession Agreement Repudiation or Cancellation
- Export Embargo / Inability to Export
- Forced Abandonment
- Forced Divestiture
- Selective Discrimination