Description
Countries that experience both real and perceived political risk can experience difficulty in accessing financing, both public and private. To address this, political risk insurance can enable financing to overcome key barriers that can inhibit financing opportunities for infrastructure.
This is particularly important in conflict situations when political risk is elevated to war risk; whether a country is directly involved or not, geographical proximity or supply-chain network can also expose countries to political risk if investors deem the effects of a conflict could spill over. This session will discuss the features of political risk insurance from the supply- and demand-side, with a particular focus on high political risk that can hamper investment efforts despite bankable infrastructure projects being available. The challenges of accessing political risk insurance will be discussed with input from both the public and private sector providers, as well as countries that could benefit from such financial instruments.

