Rising Demand for SCPR Insurance
In today’s shifting geopolitical landscape, demand for Structured Credit and Political Risk (SCPR) insurance is rising, and the market’s capacity is expanding to accommodate this. More insurers are now able to write long-term risks than ever before, according to Gallagher’s Structured Credit and Political Risk Insurance Market Report.
Role of SCPR Insurance
The SCPR insurance market plays a crucial role in safeguarding investments and facilitating trade. It remains proactive and adaptable as it addresses emerging risks in increasingly complex jurisdictions.
Impact of Geopolitical Tensions
Geopolitical tensions, particularly across the Middle East and Africa, along with shifts in economic and foreign policy following Donald Trump’s second inauguration, are expected to continue shaping trade and investment opportunities, explains the broker.
Importance for Corporates and Investors
Gallagher’s report highlights that corporates and investors must remain vigilant, adapting their risk management strategies to navigate these evolving challenges. SCPR insurance is becoming an increasingly vital tool for these companies.
Market Capacity Expansion
To meet the growing demand, market capacity has expanded, with more insurers underwriting long-term risks. For both Political Risks and Contract Frustration, there is now around $3.5 billion in available capacity for any single risk.
Conclusion
Overall, the report underscores the innovative nature of the SCPR market, providing reliable solutions for businesses operating in challenging environments.
