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Zurich's unit providing insurance solutions for emerging markets risks offers multinational corporations, investors, financial institutions, project developers and contractors protection from losses associated with political events in emerging markets. Coverages against expropriation, political violence, currency inconvertibility, non-honoring of sovereign guarantees and other perils are customized to fit the requirements of each transaction.
Coverage includes:
- policy terms up to 15 years
- capacity up to US $100 million per transaction
- indemnities from 90% to 100%
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Expropriation
Expropriation coverage protects investments against acts by the government of the country in which you are doing business. These acts include confiscation, expropriation, nationalization and other acts that deprive investors of fundamental rights to their investment, or cause overseas borrowers to default on their loans. Our policy also protects against "creeping expropriation," a series of acts that when taken together over a period of time, have an expropriatory effect. This coverage can also be expanded to include such risks as repudiation of a concession and the failure of a sovereign entity to honor an arbitration award issued against it.
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Political violence
Political violence coverage provides replacement cost compensation when politically motivated violence damages physical assets or causes an interruption of operations. Our policy provides compensation for damage or destruction of a project's assets or the loss of income for a one-year period. For loans, compensation is based on the amount in default as a result of political violence or business interruption.
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Currency inconvertibility
Currency inconvertibility coverage protects against delays that affect the ability to convert local currency into hard currency and to repatriate converted currency. Our coverage ensures your ability to remit dividends, capital, loan payments and other payments. |
Non-honoring of sovereign guarantees
Non-honoring of sovereign guarantee coverage protects financial institutions and exporters against payment defaults by sovereign entities. Our coverage provides compensation for the failure of sovereign entities as well as sub-sovereigns and some state-owned enterprises to satisfy direct debt obligations or guarantees. Non-honoring coverage can be used by exporters or contractors selling to sovereign entities as well as financing banks. Our coverage can be used on a stand-alone basis or in conjunction with Export Credit Agencies to cover local costs, down payments or third-country goods.
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Additional coverages
Coverage is available for equity, debt, emerging markets bond issues, arbitration award default, wrongful calling of contractor bonds, mobile assets, leasing, and other cross-border emerging market exposures.
Contact: michael.bond@zurich.com
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Note: coverages written by member companies of Zurich North America, including Zurich American Insurance Company. Certain coverages may not be available in all states. In addition, certain coverages may be written on a nonadmitted basis through licensed surplus lines brokers.
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