NU Online News Service, Feb. 22, 2:45 p.m.EST

The turmoil in the Middle East has heightened the interest inpolitical risk coverage as the unrest in that region has increasedconcerns regarding whether multi-national commercial accounts areadequately covered, an insurance broker said.

While the upheaval in Egypt appears to be quieting down, fighting inLibya and growing unrest throughout the Mideast has made manymulti-national clients question whether they have adequate coveragein the face of a political event.

“It’s a wave now,” said Evan Freely, trade credit practiceleader for insurance broker Marsh. “I think, just like every otherperil that has been rediscovered in the last couple of years—creditrisk after the sub-prime crisis for instance—all of a sudden peopleare discovering political risk. We are getting a lot of calls, alot of reviews, asking to review their risk to see how much it willcost.

Related:More News & Analysis on the Middle EastTurmoil

“It takes a while to develop a political risk application forthe market because you have to get investment values, propertyvalues and schedules,” he said. “I expect, now, we are starting toget the flood of quick looks; then we’ll start seeing the moredetailed applications flowing in.”

Mr. Freely added, “I don’t think this is something that is goingto fade away anytime soon.

There have been some political violence claims stemming from theweeks of unrest in Egypt that led to the ouster of the nation’sPresident Hosni Mubarak. But Mr. Freely said it could be anotherweek before there is a clear understanding of the extent of theclaims.

In Libya, reports say that the nation’s strongman, Col. MoammarGadhafi, is losing his grip on power as elements of the governmentdefect to the growing revolt against his more than 40-year rule.Security forces loyal to him have been shooting indiscriminately atprotestors, according to Human Rights Watch. As many as 63 peoplehave been killed, but there are indications that the number couldbe much higher.

For multi-national businesses in the country, the political riskexposure will be primarily for oil and gas interests, said Mr.Freely. The business interests are dominated by Europe, he noted,with only a few U.S. companies in the region.

He said that in Bahrain, meanwhile, the political risk exposureis payment obligations, which have not been affected.

In Bahrain, the majority Shiite Muslims have been protesting therule of the minority Sunni Royal family that has governed thenation for decades. A severe crackdown just last week by thegovernment has given way to peaceful protests there.

Mr. Freely said that despite all the upheaval, the politicalrisk market is not suffering any anxiety yet, but insurers areclosely examining their exposures.

“Some see this as an opportunity [for clients] to see to theirpolitical risk and make sure they understand their exposure here,”Mr. Feely observed.