Willis Towers Watson launches $1bn political risk insurance programme

Broker Willis Towers Watson has launched a new political risk insurance programme supported with over $1 billion of market capacity.

The new programme is targeted at large global clients who may have existing assets or are considering future investments overseas. It enables companies to assess and calculate the financial implications of political risks regionally, globally, by industry sector and over time.

Developed in partnership with Oxford Analytica, which translates geopolitical risk assessments into actionable analysis, the programme is based on a new modelling and analytical tool Vapor (Value at Political Risk).

“The geopolitical landscape remains extremely volatile and inherently difficult to predict," said Andrew van den Born, managing director of financial solutions at Willis Towers Watson. "The rise of populism along with the spread of protectionist agendas and the decline of multilateralism across both emerging markets and in the developed world, represent a significant threat to global trade.

"The risks that evolve from these political dynamics can have a potential catastrophic impact on our clients’ investments. The combination of our cutting-edge risk data analytics and the facilities’ programme’s market leading coverage capabilities will better enable our clients to make more informed investment decisions and allow them to plan and grow their business with confidence in an increasingly unstable environment.”

Alastair Swift, head of corporate risk and broking, GB at Willis Towers Watson, added: “Geopolitical risk is an increasing concern to our clients who are seeking new ways to assess and mitigate these risks.

"Additionally, there is increasing demand from corporate shareholders, investors and lenders for companies to articulate transparently their strategy to manage these exposures.

"To meet these requirements, a consistent and vigorous risk quantification methodology and thorough evaluation of available risk transfer opportunities will be needed. This programme is specifically directed towards meeting these demands.”

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