Clifford Chance

A Guide to Political Risk Insurance

21 March 2025

Political risk insurance (or "PRI" to use its market abbreviation) is a form of insurance that protects assets and financial interests against losses caused by certain types of political action or political violence.  It is typically taken out where an asset or investment is seen as being subject to a particular risk – for example, if it is located in a politically volatile country or is of a particularly sensitive category such as energy infrastructure.  It is often used in the context of foreign direct investment and project financing, and taken out by companies operating in a wide range of industries and sectors.

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