Trade credit insurer Euler Hermes has added a Political Risk Insurance team, based in New York, to its U.S. and Canadian services.
Arjan van de Wall, regional director, says the provider of protection against nonpayment of commercial debt had provided political risk insurance on a case-by-case basis but the company wanted to "formalize the product" based on an increase in demand, and to provide a "one-stop shop" for insureds.
According to Euler Hermes' estimates, the political risk insurance market, designed to protect foreign assets against confiscation, expropriation and nationalization, has grown 10-20 percent over the past five years.
"It is getting more and more complex to do business worldwide, especially in some regions," says van de Wall.
"These companies need balance sheet protection is a buyer is unable to pay due to a government payment moratorium or a confiscation of assets," adds Basil Louvaris, underwriting manager for the transaction cover unit.
Louvaris, was just hired by Euler Hermes. He joins David Williams, regional manager for commercial underwriting, and Ken Horne—another new hire who serves as regional sales and marketing manager.
Euler Hermes's political risk program offers financial institutions, investors and large corporation up to $100 million per risk in non-cancellable coverage for trade transactions as well as production facilities, equipment, offices, refineries and other fixed assets and equity investments.
"By mitigating the political risk on foreign assets, we can help our large clients take advantage of attractive investment and financing opportunities in emerging markets," said Jochen Duemler, CEO and head of Euler Hermes Americas Region.
The team will operate as part of Euler Hermes' Transactional Cover Unit.
Euler Hermes' Political Risk Insurance will launch on a state-by-state basis in the coming months following licensing approvals from local U.S. insurance regulators.
Last month Euler Hermes added an Excess of Loss team, also based in New York, which offers large and multinational companies protection from exceptional trade-credit losses.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.