Political Risk Insurance

11 December 2025

Political risk insurance (or "PRI") 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. PRI 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. This briefing provides an overview of how PRI works, and the considerations when taking out a policy, making a claim, and dealing with other parties.

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