NU Online News Service, Feb. 24, 12:56 p.m.EST

The upheaval in the Middle East is rattling political riskclients who are relying on rumors and sparse pieces of informationto determine if they will be subject to losses in the region,according to brokers familiar with the risk.

“It is a sensitive time right now. Nothing is for sure at themoment,” said Corina Monaghan, vice president of political risk forAon Risk Solutions.

Right now, it is difficult to get precise information aboutclaims coming out of the region, specifically Libya, noted Andrewvan den Born, executive director of Willis Ltd. in London.Information that is available comes through market rumors andindividual brokers’ experiences, he noted. Much of the claimsinformation will remain confidential and will not be disclosed. Thefew insurers who will disclose will not do so until the end of theyear when they report their financials, he noted.

Mr. Born said the political risk market “has seen some losses,but the numbers are not high at the moment. It is easily covered bythe insurance markets.”

However, noted Ms. Monaghan, there are some Aon client’s thatare very concerned with their business property in Libya. Othersare worried with contractor or import issues that could impacttheir business.

Related:More News & Analysis on the Middle EastTurmoil

Currently, clients with business interests in Libya are incrisis mode and trying to get a handle what is happening in thatcountry, she said.

The brokers noted that for U.S. businesses, there is littleexposure, at least for oil and gas interests. Most of the investorsin this sector are from Europe, but there are other U.S.-basedbusinesses that have interests in Libya unrelated to oil andgas.

The events in the Middle East have had one upside, the brokersnoted, which is that clients are taking more initiative inreviewing their exposure to political risk.

“[Clients] can face unrest quickly and they need to be protectedagainst it,” noted Mr. Born.

Ms. Monaghan said clients are now seeking feedback from those onthe ground, asking what the political pulse of the nation is.Senior managers are also taking a more active role in understandingwhat their potential losses and claims could be if there ispolitical unrest.

“There is more interest in political risk than ever before,” shesaid.

However, depending on the region and the risk, it can bedifficult and cost-prohibitive to obtain. That issue, she noted, isbeing determined on a risk-by-risk, project-by-project basis andthe market is not frozen.

The major questions going in for a buyer is, who is in charge ofa country and what is their attitude toward Americanbusinesses? In some places this is difficult to ascertainpresently.

From a buying perspective, she said, the time to purchase is notwhen a crisis is developing, but to lock in coverage while the riskremains moderate.