Zurich leaves its personal political threat market – company insurance
Zurich Insurance has withdrawn from its stand-alone political risk market and will cease its global trade credit business.
In a statement, the Swiss-based insurer Commercial Risk Europe announced that it would no longer offer any new independent insurance against political risks.
The revocation applies to stand-alone policies that provide coverage in connection with equity / asset losses caused by political dangers such as confiscation, expropriation, nationalization, deprivation, political violence, currency convertibility and government actions that prevent the execution of commercial contracts. This decision has no impact on other lines of business of Zurich, said the insurer.
"These decisions were made after Zurich determined that these portfolios no longer support our core long-term strategy," the statement said.
As another blow to risk managers, Zurich will also wind down its global credit insurance and short-term multi-buyer insurance portfolios, with exceptions in some countries.
Zurich Germany and Zurich Switzerland will continue to offer short-term trade credit insurance to their home markets, selected UK customers through Germany and some customers in other European Union countries. Zurich will no longer take out any new STMB policies from the US and UK.
"For the remainder of 2021, we expect to offer limited new single-risk credit insurance business until our full transition receives regulatory approval," it said. “There is no impact on the surety business or Zurich's appetite. Zurich remains committed to the surety business, ”she added.
Zurich said it will make "every effort" to assist customers affected by the decision to withdraw from the stand-alone political risk market. "We will continue to serve accounts and help our customers and brokers to navigate to other insurance carriers," it said.
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