Our insurance solutions cover a wide range of political and trade credit risks and are continually developing and expanding. The principal groupings, by insurable interest, are:

• Domestic receivables.
• International receivables.
• Enhancement to financing facilities.
• Overseas projects.
• Overseas Investments.

Political Risk

Recent political crises - in Southeast Asia, Russia, Latin America, the Middle East and other locations - underscore the risks of globalization. These disruptive events have resulted in some of the largest political risk insurance claims in history.

Today's political risks are not the classic risks associated with communist takeovers or post-colonial outbursts of anti-foreign sentiment. The risks are subtler, arising from legal and regulatory changes, government transitions, environmental and human rights issues, currency crises, and terrorism. For global companies, these instabilities can lead to political risk losses that threaten corporate financial positions. The principal groupings, by insurable interest, are:

• Contracts.
• Investments.
• Projects.
• Energy exploration and production.

Our holistic approach to political risk management can help you evaluate your company's political risk exposures and determine the most appropriate course, whether it involves insurance solutions, risk management tools or a combination of both. We can provide assistance at every stage, from identification and assessment of risk to mitigation and loss control.

Credit insurance

Receivables may comprise over 40% of your company's current assets. How certain are you of being able to convert them into cash ?

Company failure is part of the business environment. The world's economies and its political map continue to change rapidly. Even with good research and strong relationships, you may not be able to pinpoint where a loss might arise.

Credit insurance provides costed management of the unforeseen to complement the insurances that you already purchase for other tangible assets including buildings and inventory.

Specialist credit insurers maintain libraries of buyer and market information, guiding your choice of customer and the appropriate level of credit and terms of payment.

Using credit insurance you can offer more flexible payment terms. You may be able to increase your credit exposures on customers, providing a platform to generate more sales.

The benefits of credit insurance include:

• Protect your current assets.
• Credit insurance transfers the payment risk to an insurer, risking its balance sheet and not yours.
• Security for goods made to order.
• You can extend your policy to cover the risk of credit or political risk frustration of your contract before despatch.
• Gain a competitive advantage.
• Credit insurance allows you to capitalise on sales beyond your normal risk appetite.
• Working with the credit insurer, you may be able to increase credit limits and lengthen terms so your buyer displays more of your products than those of your competitors.
• Increase your credit lines with lenders.
• Trade finance banks recognise the enhanced value of the credit insurance on your debts. This reduces the cost of borrowing.
• With credit insurance protection you can reduce your reserve for bad debts. Credit insurance premium is treated as a business expense.

Sales and marketing information

Aon clients can access a wide range of business information. Good research can highlight the structural requirements, opportunities and risks of entering a new market or developing into a new trade sector, allowing valuable management resource to be targeted profitably.