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Survey Report

Insurance Marketplace Realities 2023 – Political risk

December 1, 2022

The continuing reverberations of the crisis in Ukraine have drawn increased multinational corporation interest in learning about political risk insurance.
Credit and Political Risk
Rate predictions: Political risk
Trend Range
Anniversary host-country sub-limit increases Neutral Increase Up to +45% for host-country sub-limit increases in sensitive countries
New programs Neutral Increase +15% to +25% for programs excluding China, Taiwan and Turkey; higher for programs including those countries

Since the beginning of the Russia/Ukraine crisis, there has been a spotlight on PRI which has led to increased interest from multinational corporations’ risk managers, often directed by their C-suites.

  • The political risk insurance marketplace has risen to the occasion, with many claims ongoing in both Russia and Ukraine. WTW has supported many clients with claims from political violence (damage to property), forced abandonment (a non-damage situation which results in the client abandoning their operations due to a security situation, which has been common in the Donbass region and in Russia), and currency inconvertibility (as the Russian government has closed the foreign exchange window for many companies, harming their ability to remit dividends, pay off intercompany loans, or repatriate proceeds of a divestiture).
  • Given the media coverage of the crisis in Ukraine, PRI has garnered strong interest from the media given war exclusions under other insurance programs and the need to explain to readers where war and political risk coverage can be found.
  • The tensions between China and Taiwan/U.S., and the U.S. sanctions and restrictions on U.S. citizens working for Chinese companies in the semi-conductor industry, has awoken many U.S. companies to political risk in China. Xi Jinping’s appointment to lead China for a third, precedent-breaking, term and stacking the Politburo with allies is also concerning for many multinationals.
  • The spate of coups and attempted coups in West Africa has continued, with a failed coup attempt in Mali and a successful coup in Burkina Faso.
  • The U.S.’ rapidly tightening monetary policy has led to the strongest dollar in decades. This has led to increased inflation in the rest of the world, especially in developing countries that rely on imported food/fuel, as these commodities are traded in dollars. High food inflation in particular puts many developing countries, especially in the Middle East and Africa, at risk of social unrest.
  • Clients seeking to differentiate their risks must focus on incident reporting, claim mitigation, policies and procedures. Emphasis on the clinical program management will also have a positive impact, particularly those with a focus on fall management, elopement, medical management and infection prevention and control.

We are following several trends in the political risk insurance marketplace.

London market: Little appetite for multi-country PRI. The remaining appetite is going for higher rates.

U.S. market: More appetite for PRI, especially multi-country PRI, than the London markets. In the recent past we were able to negotiate CEND triggers for business interruption, though in the tightening market, fewer markets are amenable to this enhanced cover.

Country capacity update: Most underwriters are closed to Russia and Ukraine in new PRI programs. Some underwriters are open to Taiwan and Turkey, though capacity is severely limited, and pricing reflects that.

  • With the market tightening, when attempting to place a large multi-country PRI program, there is a greater need to create innovative layering and syndicated approaches to muster as much capacity as possible.
  • Market conditions are increasingly challenging for certain sectors, such as technology (especially semi-conductor companies) and retail.
  • For clients in sectors/countries that are particularly challenging to place now, we advise that, if the markets do not support the size of the program they’re requesting, they purchase what they can get now. The PRI marketplace emphasizes loyalty, so those that purchase programs will be front-of-line once capacity loosens.


Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Each applicable policy of insurance must be reviewed to determine the extent, if any, of coverage for losses relating to the Ukraine crisis. Coverage may vary depending on the jurisdiction and circumstances. For global client programs it is critical to consider all local operations and how policies may or may not include coverage relating to the Ukraine crisis. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal and/or other professional advisors. Some of the information in this publication may be compiled by third-party sources we consider reliable; however, we do not guarantee and are not responsible for the accuracy of such information. We assume no duty in contract, tort or otherwise in connection with this publication and expressly disclaim, to the fullest extent permitted by law, any liability in connection with this publication. Willis Towers Watson offers insurance-related services through its appropriately licensed entities in each jurisdiction in which it operates. The Ukraine crisis is a rapidly evolving situation and changes are occurring frequently. Willis Towers Watson does not undertake to update the information included herein after the date of publication. Accordingly, readers should be aware that certain content may have changed since the date of this publication. Please reach out to the author or your Willis Towers Watson contact for more information.


Senior Vice President, Political Risk, Americas,

Laura leads WTW’s political risk solutions in the America’s with over a decade of experience in political risk.

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