Project Finance Insurance - Panorama Insurance Brokers

Project Finance Insurance

Supporting the project finance and private equity industries has become Panorama’s fastest growing sector. We provide access to one of the largest and most experienced Political Risk Insurance (PRI) teams in the London market.

The company has unparalleled expertise in emerging markets and political risk insurance is core to that offering.

Our team focus on enabling project sponsors and lenders to arrange finance in a wide variety of sectors from construction, infrastructure and power to increasingly innovative renewable energy networks.

By arranging political risk insurance for Equity and Debt investors, our role is to offer alternatives in transferring the underlying risk of their investments to specialist insurers.

Why purchase Political Risk Insurance (PRI)?

  • To protect your balance sheet against sizeable, unpredictable losses when trading in high risk / high reward territories.
  • To support expansion of your business while offsetting higher country risks.
  • To facilitate the approval of bank finance.
  • To reduce the overall cost of funding using insurance as security

Cover can include the following risk headings:

  • Confiscation, Expropriation, Nationalisation, Deprivation.
  • Political Violence.
  • Currency Inconvertibility/Non-Transfer of Funds.
  • Arbitration Award Default (where international courts award in favour of the insured, and the counterparty under the award, defaults on their subsequent obligations).
  • Project Finance Cover (where there is non-payment by the project company to the lenders).

Some key points to consider for investors seeking political risk coverage;

  • Political risk cover is only available to foreign investors – cover cannot be provided to local entities against actions / inactions of their own government.
  • Depth, capacity and pricing on a typical 7 year tenor for political risk cover can vary widely dependent on the territory concerned, the underlying investment and the status of the counterparties.
  • Investors should adopt a pragmatic approach to their choice of currency to limit unexpected adverse exchange rate movements.

Panorama offer a wealth of experience in risk transfer solutions for emerging markets.  We are available to assist where required.

To do so, we typically require:

  • Full project details, ideally in a project memo.
  • Clarity on the parties involved, both equity and debt.

Panorama aim to be mandated to place insurance on behalf of project sponsors/lenders. In so doing, we are happy to sign Non-Disclosure Agreements, as required.

Call a Panorama global insurance consultant today on
+44 (0)207 692 0642
and speak with a project finance specialist in your territory.