Welcome to the latest edition of our market update. In this update, we look at global macroeconomic challenges and, in particular, how they have affected the risks faced by those trading with or investing in a range of emerging markets (EMs). We will also provide an update on the Structured Credit and Political Risk (SCPR) insurance market, address changes in capacity, and highlight recent market moves.

As you will see, the SCPR insurance market remains robust as it evolves to face new types of risks. Capacity is at near record levels, with more insurers capable of writing long-term risks than ever before. A decade ago, no insurer could offer eight years for Commercial Trade Risks (CR). Now, there is over USD1.3 billion of available capacity for 10-year risks and USD880 million for 15 years.

In this market update, we are pleased to work alongside Pangea-Risk, a specialist intelligence advisory that delivers accurate, decision-ready, and commercially relevant forecasts and analysis on political, security, and economic risk. The Pangea-World Global Risk Ratings are based on proprietary methodology using a default high-risk score and reproduced for Arthur J. Gallagher (UK) Limited, with more details available at www.pangea-risk.com.