Political-risk insurance (PRI) is the insurance layer built for exactly the events this practice handles: expropriation, currency inconvertibility and transfer restrictions, political violence, and — in some policies — breach of contract by a sovereign. We advise investors on placing PRI intelligently before trouble, and on recovering under it when trouble arrives.
Where PRI Comes From
Coverage is written by multilateral and public insurers — MIGA (World Bank Group) and the U.S. International Development Finance Corporation among them — and by private-market underwriters. Terms differ materially: covered perils, waiting periods, valuation, and exclusions all move from policy to policy, which is why the placement review matters as much as the premium.
Recovering Under a Policy
- Notice and cooperation — PRI policies police their notice windows and consent requirements strictly; late or unilateral steps can forfeit coverage
- Characterizing the event — whether a measure is “expropriatory” or a transfer restriction under the policy’s definitions is a legal argument, not a formality
- Valuation and waiting periods — building the loss record from day one
- Subrogation — after payment, the insurer typically steps into your claims against the state, which must be coordinated with any treaty strategy
Coordinating PRI With Treaty Remedies
PRI and treaty claims are complements, not substitutes — but they interact. Double-recovery rules, subrogation rights, and settlement timing all require one coordinated strategy: see investment protection and, for financed projects, project finance disputes.
Holding a PRI policy and facing a covered event? Notice clocks may already be running. Contact our office promptly.
Attorney advertising. General information only, not legal advice. © Transnational Matters PLLC.
