Neon leads new political risks insurance consortium

Neon is to lead the newly established London Political Risks Insurance Consortium, with MS Amlin a joint agreement party. Driven by Neon’s recently promoted head of specialty, Nicholas Robinson, the new initiative will respond to increased levels of political uncertainty across the globe.

The consortium aims to provide insurance coverage to corporate investors and financial institutions for assets which can be located anywhere in the world, including in emerging markets.

With a maximum policy period of seven years, it provides coverage which offers clients longer-term peace of mind than is typically available, for risks including confiscation; expropriation; nationalisation; deprivation and political violence and war.

The new consortium has a US$100m limit per policy and, uniquely in the market, is made up of 100% Lloyd’s capacity. It will allow syndicates to compete more easily for bigger risks demanding larger capacity at more attractive rates, with brokers able to access leading underwriting expertise in a single meeting.

Robinson says political risks insurance has long been a strength of Lloyd’s and Neon, with a combined half a century’s experience in this specialist field.” This includes the expertise to consider confiscation of business for assets owned through shareholding. The consortium can also support the growing group of financial institutions looking to lend into emerging markets and which therefore require country risk coverage,” he said. “The consortium will provide the necessary scale and breadth of coverage for both London-based and global clients at a time where there is growing demand for the product, following various loss events in South America, Eastern Europe, North Africa and Asia.”

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