Welcome to the latest edition of Gallagher’s Structured Credit and Political Risk (SCPR) Insurance Market Report. As ever, we provide an up-to-date reflection of the market’s capacity, notable market moves since our Q3 2024 edition as well as a handful of country reports compiled by Pangea-Risk.
In today's dynamic geopolitical landscape, the SCPR insurance market plays a pivotal role in safeguarding investments and facilitating trade. It remains proactive and agile as it faces new types of risk in increasingly challenging jurisdictions. The geopolitical frictions, notably across the Middle East and Africa, and the shift in economic and foreign policy following Donald Trump’s second inauguration, are certain to continue influencing trade and investment opportunities. The fallout is that corporates and investors will need to remain vigilant whilst adapting their risk management strategies to navigate these evolving challenges effectively – SCPR insurance is becoming an increasingly vital tool for these companies. In order to accommodate the rising demand for the product, capacity in the SCPR market has grown again with more insurers capable of writing long-term risks than ever before. This growth is clearly illustrated in our ‘Market Capacity’ section where you’ll see that for both Political Risks and Contract Frustration, there is around USD 3.5 billion dollars’ worth of capacity for any one risk. The innovative nature of the SCPR market offers a reliable solution for those businesses operating in challenging environments.
This report is written in conjunction with Pangea-Risk who have provided us with some concise and insightful country reports. Having collaborated with us on our previous two market reports, their expertise continues to enhance our understanding of global risk landscapes, providing valuable perspectives that help shape our strategic approaches. 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.
Product Glossary
On behalf of our clients, Gallagher's Structured Credit and Political Risk team arrange insurance products to mitigate the risks arising out of trading, financing and investing - often with a focus on developing markets.
Click to view a full glossary of the terms referenced in this page.
Pangea Risk Emerging Market Review
This section, and the commentary on specific countries which follows, has been compiled in association with Pangea Risk.
Insurance market capacity update
The following market capacity data has been compiled by Gallagher from information provided by each insurer to summarise the recent changes in the Structured Credit and Political Risk insurance market.
Capacity is broken down between each insurer (whether Lloyd’s syndicate or insurance company), showing their maximum line size and policy tenor, as well as the category of insurance (see Product Glossary).
All data is correct as of 01 July 2024, and where an insurer has a Lloyd’s and company market platform, their data is not double-counted in the calculation of total capacity.
Market updates Q1 2025
IQUW IQUW have hired Andrew Tongue from Canopius as lead underwriter, CPRI.
Ken Chris Crane has joined as an underwriter from Talbot.
QBE QBE have hired a new Senior Underwriter, Chris Pritchard, to join the Political Risk Team from Miller.
Axis CRS Bryan Niggli has joined Axis CRS as Structured Credit Lead from Credit Suisse. Bryan will be based in Zurich and will focus on SRT and other similar portfolio Credit Risk Transfer business.
SCOR From Sept 2024, Tu-Linh Tran has joined SCOR as an Underwriter from Société Générale.
Fidelis Aycan Ertugrul and Kevin Orpen have joined Fidelis as Senior Underwriters, from Mizuho and Citigroup respectively.
Vantage Erick Soto and Robert Wight have joined as Senior Underwriters from EXIM and MIGA respectively. Stephanie Deatherage has joined as Risk manager from EXIM.
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