Navigating the Volatile Political Risk Insurance Market

With intensifying geopolitical tensions imperiling the financial stability of many multinational companies, it has become increasingly difficult to purchase political risk insurance to offset extreme government actions like asset expropriation, currency inconvertibility and sovereign debt defaults. Several factors, including the rise of autocratic regimes across Latin America, a new “coup belt” emerging in Africa, and a record number of elections across the world in 2024, are combining to negatively affect the availability of political risk insurance and related coverage terms, conditions and limits.