Within the Political and Credit Risk team, we have extensive experience in the insurance, banking and ratings agency sectors, providing our clients with expert and comprehensive advisory and coverage across the Political and Credit Risk spectrum, with top-tier line size and tenor capabilities.
The team uses multiple information service providers to align our knowledge base with our clients. This applies across various areas, from shadow rating methodology, to aircraft and shipping asset valuations, and political risk consultants with capabilities on the ground across the globe.
Political and Credit Risk’s worldwide client base includes Corporates, Export Credit Agencies, Financial Institutions, Multilateral Institutions and Traders.
Types of cover
The Non-Payment Insurance (NPI) product typically covers the insured against non-payment for any reason, usually arising from default, insolvency or bankruptcy. Lloyd’s underwriters code non-payment insurance products as contract frustration, financial guarantee or trade credit, as per Lloyd’s bulletin Y5191.
NPI is provided on the basis of a partnership between insurers and clients, with fair presentation of the risk to be insured, as required by insurance law, and supplemented by insurers’ independent underwriting analysis.
The policies generally include a “waiting period.” Waiting periods are of negotiable length, typically 90-180 days.
Similar principles to those in Trade Credit apply, however Contract Frustration is applicable where the counterparty risk insured is a government entity or a commercial entity controlled and/or majority-owned by a government entity, i.e. Ministry of Finance or state-owned utility provider.
Political and Credit Risks can include and expand the coverage provided by the Terrorism and Political Violence team to losses arising from:
- Capture and Seizure
- Confiscation, Nationalisation and Expropriation
- Selective Discrimination
- License Cancellation
- Forced Divestiture
- Arbitration Award Default
- Currency inconvertibility and Exchange Transfer
Kade Spears joined the Channel Syndicate, now SCOR Channel, in October 2013 to head up the Political and Credit Risk team and has worked in this field since graduating with a Bachelor of Science from Washington & Lee University. Kade was previously the head of a team in the London market and has worked in Bermuda, Houston and Singapore during his career. He was promoted to Head of Specialty in 2014 and completed a Master in Arts in International Relations from the Fletcher School of Law and Diplomacy at Tufts University in 2018.