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

Our Political & Credit Risk Insurance Team

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David Coupland

Senior Vice President
david.coupland@lockton.com
+44 207 933 2445

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Chris Wetherell

Head of FPR Europe Specialty
chris.wetherell@lockton.com
+44 207 933 2658

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James Gearing

Producer Europe Specialty
james.gearing@lockton.com
+44 207 933 1479

News and Insights

A mining boom is underway in Latin America. Ample resources, rising commodity prices, and foreign investment in critical minerals are fuelling sector growth. But as profits increase, so companies are coming under increasing pressure from illegal operations in search of their own share.

Mining companies cannot resolve this situation alone: ultimately, a resolution requires political will. But help is available. By taking advantage of solutions to mitigate and transfer risk, companies can insulate their operations against potential threats.Political violence: tackling illegal mining risks in Latin America

Living sector: why risk management is crucial for repurposing projects

Changes within the commercial real estate (CRE) market are pushing property owners to consider repurposing their assets. Pivoting to the living sector has emerged as an attractive option for landlords seeking greater yields on their properties. Changes within the commercial real estate (CRE) market are pushing property owners to consider repurposing their assets. Pivoting to the living sector has emerged as an attractive option for landlords seeking greater yields on their properties.

Back-to-back property transactions: best practice for conveyancers

In a challenging economic climate, where liquidity pressures and opportunistic investment strategies are shaping the property market, many conveyancing solicitors are seeing an increase in requests for back-to-back or same-day property transactions. These involve a property being bought and immediately resold, often on the same day, at a higher price.

While lawful, back-to-back conveyancing transactions are considered high-risk for solicitors and conveyancers, both from a professional indemnity and regulatory perspective, due to their potential for money laundering, mortgage fraud, and the possibility of the transaction collapsing. Conveyancers must be highly vigilant for red flags and perform stringent due diligence. 

Understanding how to manage these exposures is essential to protecting your firm, your client, and your professional standing.In a challenging economic climate, where liquidity pressures and opportunistic investment strategies are shaping the property market, many conveyancing solicitors are seeing an increase in requests for back-to-back or same-day property transactions. These involve a property being bought and immediately resold, often on the same day, at a higher price.

While lawful, back-to-back conveyancing transactions are considered high-risk for solicitors and conveyancers, both from a professional indemnity and regulatory perspective, due to their potential for money laundering, mortgage fraud, and the possibility of the transaction collapsing. Conveyancers must be highly vigilant for red flags and perform stringent due diligence. 

Understanding how to manage these exposures is essential to protecting your firm, your client, and your professional standing.

Carbon Credit Insurance: progressing from green hushing to credible disclosure

An increasing number of companies are choosing to limit or withhold public disclosure of their carbon offsetting activities. This approach, commonly referred to as ‘green hushing’, is an attempt by organisations to reduce external scrutiny of their ESG strategies amid heightened regulatory, legal, and reputational risks. An increasing number of companies are choosing to limit or withhold public disclosure of their carbon offsetting activities. This approach, commonly referred to as ‘green hushing’, is an attempt by organisations to reduce external scrutiny of their ESG strategies amid heightened regulatory, legal, and reputational risks.
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