FCIA's Equity Investments policy's core coverage is for Confiscation, Expropriation, or Nationalization of an investment or asset by a foreign government. If this core coverage is desired, coverage for other perils can be added including:
- Selective Discrimination by a foreign government against your operation
- Forced Abandonment of your operation caused by war or political violence
- A foreign government act that prevents ability to import or export
- Currency inconvertibility
- Physical asset damage resulting from political violence. Political violence normally includes such risks as war, civil war, revolution and terrorism
Target Customers
FCIA's Equity Investments policies cover experienced multinational companies and financial institutions with significant overseas investments and operations.
FCIA's Capabilities
- Policy limits of up to $25,000,000 for any one risk
- Coverage periods up to seven years
- Non-cancelable limits during the policy period
PRI Example
A major multinational company has subsidiaries with significant manufacturing operations in several emerging markets around the world. The company realizes that it is exposed to confiscation, expropriation, nationalization or other specified perils. To protect company assets and shareholders' interests, the company decides to buy a Political Risk Insurance policy that insures its equity investment in the subsidiaries and the subsidiaries' assets against specified political risk events. The policy provides non-cancelable limits for five years in countries where the subsidiaries are located.