Political risk insurance coverage: Options and opportunities

Members of the Bolivarian National Guard of Venezuela stand guard as demonstrators march during a pro-opposition rally in Caracas, Venezuela, on Wednesday, Jan. 23, 2019. President Donald Trump recognized Juan Guaido as the interim president of Venezuela minutes after the opposition leader declared himself the head of state, in the U.S.’s most provocative move yet against the leftist regime of President Nicolas Maduro. (Photo: Carlos Becerra/Bloomberg)

Political turmoil across the globe has led to unprecedented risks for U.S. companies doing business abroad. A surge in nationalism and increasing influence by far-right political leaders worldwide have left even traditionally-stable nations subject to civil unrest, attacks on democratic institutions, and discrimination against foreign interests.

In light of such uncertainty, U.S. companies are increasingly turning to political risk coverage to protect their foreign investments. Once viewed as a risk mitigation tool necessary only in emerging markets, political risk policies have surged in popularity as companies search for stability in an increasingly turbulent global political climate.