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.

PRODUCTS AND SERVICES

Political and Credit Risks

Get in touch (opens a new window)

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

Placeholder image

Claus Trentel

Partner
Claus.Trentel@lockton.com
+45 3054 7626

News and Insights

The voluntary carbon credits market, valued at approximately $2 billion in 2024, is projected to grow to up to $35 billion by 2030, according to research from MSCI. These projects need financing, creating a significant opportunity for financial institutions. Financial institutions: reducing the risk of carbon credit projects

Derisking BESS projects

Demand for grid stability, improving battery technology, and significantly decreasing prices, has facilitated rapid growth in the battery energy storage system (BESS) market across the world. Demand for grid stability, improving battery technology, and significantly decreasing prices, has facilitated rapid growth in the battery energy storage system (BESS) market across the world.

AI risks: what directors and officers need to know

All new technologies carry risks when introduced on an enterprise level. Artificial intelligence (AI) is no exception, and directors and officers may find themselves in the crosshairs should negative repercussions arise from the use of such tools. 

To be prepared for the potential regulatory scrutiny or claims activity that comes along with the introduction of a new technology, it is imperative that boards carefully consider the introduction of AI, and ensure sufficient risk mitigation measures are in place. All new technologies carry risks when introduced on an enterprise level. Artificial intelligence (AI) is no exception, and directors and officers may find themselves in the crosshairs should negative repercussions arise from the use of such tools. 

To be prepared for the potential regulatory scrutiny or claims activity that comes along with the introduction of a new technology, it is imperative that boards carefully consider the introduction of AI, and ensure sufficient risk mitigation measures are in place.

Johan Lindvall joins Lockton Sweden as CEO

Lockton, the world’s largest independent insurance broker, has announced that Johan Lindvall has joined Lockton Sweden as CEO, effective 1 May 2025. Lockton, the world’s largest independent insurance broker, has announced that Johan Lindvall has joined Lockton Sweden as CEO, effective 1 May 2025.
See all news and insights

We're here to help

We bring creative thinking and an entrepreneurial spirit to the insurance business and are uniquely positioned to help you succeed.

Talk to our team