Turkey: Political risk insurance remains a buyer's market despite coup
Source: Middle East Insurance Review | Oct 2016
Despite the short-lived attempted coup in Turkey on 15 July which was the latest in a long string of unsettling political unrest in recent years, buyers can still readily access political risk insurance to protect their business against a variety of global risks, according to Ms Angela Duca, Senior Vice President, Political Risk and Structured Credit Practice, at Marsh.
The reaction of political risk insurers to Turkey has mirrored events in Russia, Brazil, and other countries that have seen unrest in recent years: political risk coverage is available, but insurers are being more selective, she said in an article on the Insights page of Marsh’s website.
For buyers with low to medium risk portfolios, political risk insurance is particularly accessible. Despite some losses and an increase in claims notifications, insurers still view political risk as a profitable line of coverage. And they are competing for new and existing business — which means that buyers can potentially obtain the coverage at favourable rates.
In this continued buyers’ market, businesses can potentially lock in low rates for the next several years, she added.