When you trade or invest across borders, your balance sheet is at risk. In commodities, where pre-payment is common as a means of financing production and guaranteeing long-term supply, non-payment or non-delivery can have a devastating commercial effect. We help you protect yourself against these sorts of risks with our political and credit risk insurance team.

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Political and Credit Risks

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We focus on the risks associated with cross-border trades and investments

When you trade or invest across borders, your balance sheet is at risk. In commodities, where pre-payment is common as a means of financing production and guaranteeing long-term supply, non-payment or non-delivery can have a devastating commercial effect. We help you protect yourself against these sorts of risks.

We also help you manage political risk. Foreign government actions like war, trade embargoes and expropriation can affect your bottom line, costing you tens or hundreds of millions. They can even cause you to write off your investment completely. The longer your trade or investment agreement, the greater the uncertainty – and the more you need cover.

We arrange insurance coverage that protects you against political and counterparty risks in trade transactions. We work with commodity traders and the banks that finance them, as well as with equity investors who have subsidiaries or physical assets abroad. Clients include the leading banks, construction companies, international commodities traders,  industrial companies, miners, oil producers and exporters.

What we cover

We’re more than an insurance broker – we’re a partner helping you protect your balance sheet.   We investigate the insurance market to find counterparties who’ll take on your political and trade credit risks at a premium you’re comfortable with.

We’ll advocate for you and negotiate hard on your behalf. As well as this, we’ll:

  • Analyse your risk and identify areas where a government action may threaten your investment

  • Study your contracts and recommend changes if needed to make them insurable

  • Suggest ways to structure your risk to reassure underwriters, such as obtaining collateral or guaranties

  • Get underwriters more closely involved with you and your risk to develop a true partnership

  • Advise you on the best way to manage your risk, not just the best insurance to buy

Lockton Denmark Contacts

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Claus Trentel

Head of Transaction Liability, Nordics
Claus.Trentel@lockton.com
+45 3054 7626

News and Insights

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The 2026 renewal season has been a difficult one for Protection and Indemnity (P&I) Insurance buyers. General increases – the additional amount that P&I clubs require from their members, represented as a percentage of the premium paid by each member – sat at a mean average of 6% across the International Group. The most frequent increase sat slightly lower, with 7 of the 12 clubs asking for increases of 5%. The American Club and Steamship members saw the highest increase of all, at 8%. In addition, except for Gard, all clubs have asked for standard deductible increases.The 2026 renewal season has been a difficult one for Protection and Indemnity (P&I) Insurance buyers. General increases – the additional amount that P&I clubs require from their members, represented as a percentage of the premium paid by each member – sat at a mean average of 6% across the International Group. The most frequent increase sat slightly lower, with 7 of the 12 clubs asking for increases of 5%. The American Club and Steamship members saw the highest increase of all, at 8%. In addition, except for Gard, all clubs have asked for standard deductible increases.

Political Violence Market Update 2026

A softening market for Political Violence (PV) Insurance is a welcome sign for buyers, following a prolonged hard period. An influx of approximately £350m of new capacity via Lloyd’s syndicates and specialist underwriting agencies is driving competition, enabling brokers to market accounts more widely and deliver premium savings to clients.

But it's not all straightforward. While the years prior to 2022 saw a high volume of claims relating to civil unrest, the market has since been dominated by larger-scale incidents of political violence – forcing insurers to adapt their strategies. For buyers, this introduces complexity: S&T policies are now unlikely to offer indemnity against some of the most common threats of the last three-to-five years. This being the case, more buyers may gravitate towards the broader scope of Political Violence cover.A softening market for Political Violence (PV) Insurance is a welcome sign for buyers, following a prolonged hard period. An influx of approximately £350m of new capacity via Lloyd’s syndicates and specialist underwriting agencies is driving competition, enabling brokers to market accounts more widely and deliver premium savings to clients.

But it's not all straightforward. While the years prior to 2022 saw a high volume of claims relating to civil unrest, the market has since been dominated by larger-scale incidents of political violence – forcing insurers to adapt their strategies. For buyers, this introduces complexity: S&T policies are now unlikely to offer indemnity against some of the most common threats of the last three-to-five years. This being the case, more buyers may gravitate towards the broader scope of Political Violence cover.
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