The Law of Political Risk Insurance

This book explores the scope of host states’ sovereign powers and the rights of foreign investors. Investors from developed countries engage in business with developing countries for various purposes, including political reasons, expanding and diversifying their operations, accessing essential natural resources and skilled labor forces, lowering their production costs, and in some cases, even mitigating global warming. Correspondingly, in order to attract foreign investment, host countries can provide incentives or make concessions. However, once the investment has been made, these ventures are vulnerable to the actions of the host state. Political risk insurance, as the name suggests, serves to protect investments made in foreign countries where the sovereigns are more likely to interfere in the business activities of foreign investors. This book offers a comprehensive understanding of the general mechanics of each main type of political risk, the entities responsible for these risks, insurers, their unions, and the subrogation process. Bridging the fields of investment law, insurance law, and international law, it offers valuable insights from both practical and academic perspectives.