Welcome to the latest edition of our market update. In this report, we look at global macroeconomic challenges and 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.

The last six months have been turbulent, and the outlook for the next half-year remains uncertain. Ongoing conflicts in Ukraine and the Middle East weigh heavily on the market, with the latter on the verge of spiralling into something much more severe.

Perhaps the most significant event on the horizon is the US election in November, the outcome of which may have enormous consequences for Ukraine, trade with China, the future of NATO and Western diplomacy in Africa, etc. Considering this uncertain risk environment, the importance of the SCPR insurance market in supporting trade and investment has never been greater. It continues to partner with new and long-term buyers of the product to offer reliable and innovative policies to support their business.

We are pleased to work alongside Pangea-Risk, a specialist intelligence advisory that delivers accurate, decision-ready, and commercially relevant forecasts and analyses 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.