Direct investments abroad
“I plan to invest abroad but I am worried about the impact of political risk on my business.”
The acquisition of a business, commencing production abroad or opening of a foreign distribution company are the standard instruments used to expand onto new markets and boost sales. The risks that can have an adverse impact on such advances are unexpected events of political nature in the country of the investment. This could be, for example, a change in legal regulations concerning the investment – a risk present even in countries of the European Union. Our insurance protects your business against these risks.
Your company is planning to expand to new markets abroad. You know the potential of the market on which you want to invest and are ready to bear a certain investment risk. Political risk, however, is beyond your control. The insurance cover offered by us encompasses all the losses incurred in connection with the implementation of a direct investment abroad that follow from the actions of the state in which the investment is being executed:
- changes in legal regulations (regulatory risk),
- inability to transfer receivables,
- complete deprivation of the possibility of exercising the rights linked to the investment.
Indemnity is also paid in the event of the investment being damaged as a result of force majeure, e.g. earthquakes, floods, fires or war.
What kind of investments do we insure?
We insure investments that are:
- comply with the binding and applicable law in the country of the investment at the time of carrying out the investment.
The insurance covers direct investments abroad, understood as:
- acquisition of a foreign company or its organised part,
- establishment of a company abroad (including branches and representative offices),
- allocation of funds to extending operations of an existing representative office,
- performance of additional contributions and granting of loans by shareholders,
- acquisition of real estate and other fixed assets.
What is the subject of insurance?
We insure the investor’s pecuniary and tangible expenditures, as well as intangible and legal assets contributed by the investor to a foreign business.
What are the benefits?
- The investment is protected against political risk occurring in the country of investment.
- A compensation is provided that allows recovery of invested funds.
- The payment of the indemnity is guaranteed by the State Treasury.
- The cover spans nearly 200 countries worldwide, in line with the current policy regarding officially supported export insurance.
- The insurance covers a period of even up to 15 years.
- Up to 90% of the value of the investment can be covered by the insurance.