The global Political Risk Insurance Market Study analyzes and forecasts the market size across 6 regions and 24 countries for diverse segments -By Type (Expropriation, Political Violence, Currency Inconvertibility, Contract Frustration, Non-payment), By Application (Individuals, Businesses).
The Political Risk Insurance Market is projected to grow as businesses expand their operations into emerging and politically volatile regions. Political risk insurance (PRI) protects companies against losses resulting from government actions, civil unrest, expropriation, and other political events that may disrupt business operations. With the increasing globalization of trade and investment, particularly in resource-rich but politically unstable regions, the demand for PRI is rising. Industries such as energy, mining, infrastructure, and financial services are key drivers of this market. Additionally, the global economic instability, coupled with geopolitical tensions, further fuels the need for comprehensive political risk coverage. However, the complexity of assessing risks in diverse political environments poses challenges for insurers.
The market report analyses the leading companies in the industry including AIG, Atradius, AXA XL, Chubb, Euler Hermes, Liberty Mutual, Lloyds of London, Marsh, Overseas Private Investment Corp, Zurich Insurance, and others.
The Political Risk Insurance (PRI) Market is seeing a prominent trend driven by increasing global political instability and the growing demand for risk mitigation tools. As businesses expand internationally and venture into emerging markets, the need to protect investments against political risks, such as expropriation, nationalization, currency inconvertibility, and political violence, has intensified. In particular, geopolitical tensions, trade disputes, and the economic impacts of political events like Brexit, the U.S.-China trade war, and unrest in the Middle East have heightened awareness of these risks. This has led to an increased demand for PRI products, as companies seek to safeguard their assets and investments in politically unstable regions. The rise of these risks is prompting both multinational corporations and smaller enterprises to seek comprehensive coverage, expanding the scope and size of the political risk insurance market.
A key driver of the Political Risk Insurance Market is the growing volume of foreign direct investments (FDI) and the increased international expansion of companies. As businesses pursue new growth opportunities in high-potential but politically unstable regions, the risk of adverse political events affecting these investments becomes a critical concern. PRI provides companies with the necessary protection against such risks, ensuring they can operate in new markets with greater confidence. Furthermore, developing economies are seen as emerging growth hubs for FDIs, but they often come with higher political and economic risks. As investors seek to expand into these markets, the demand for political risk insurance as a risk management tool will continue to grow, contributing to the expansion of the PRI market.
An emerging opportunity in the Political Risk Insurance Market lies in the development of tailored insurance products that cater to the unique risks of emerging and frontier markets. Many countries in these regions have specific political, economic, and social risks that differ significantly from those in developed markets, and there is a growing demand for PRI products that are customized to address these local risks. Offering more granular and market-specific solutions could allow insurers to better serve investors entering high-risk areas. Additionally, with the rise of startups and small and medium enterprises (SMEs) expanding internationally, there is an opportunity for insurers to develop flexible and affordable PRI products that are accessible to a broader range of businesses, opening up new market segments.
In the political risk insurance (PRI) market, the largest segment is the business application, driven by the increasing need for companies to protect their investments and operations in politically unstable or high-risk regions. Businesses, especially multinational corporations, often face significant risks related to expropriation, political violence, currency inconvertibility, and government instability. These risks can lead to severe financial losses, impacting revenue, assets, and operations abroad. PRI provides these companies with protection against such uncertainties, ensuring their ability to operate securely in emerging and high-risk markets. The demand for PRI from businesses is further amplified by globalization, where companies are increasingly expanding into regions with unpredictable political climates. As such, businesses represent the largest segment in the political risk insurance market due to their substantial exposure to global political risk and the critical need to mitigate these risks for smooth operations and long-term profitability.
The fastest-growing segment in the political risk insurance (PRI) market is the political violence type, which includes coverage against risks such as terrorism, civil unrest, war, and other forms of political violence. This growth is driven by the increasing frequency and severity of political conflicts and unrest across the globe, particularly in emerging markets and regions with volatile political environments. As global businesses continue to expand into high-risk areas, the potential for disruptions caused by political violence—such as damage to infrastructure, loss of assets, and interruptions in operations—has heightened. Companies and investors are seeking robust protection against such risks to safeguard their investments and ensure business continuity. Furthermore, the rise of geopolitical tensions, social movements, and conflicts in both developing and developed nations has created an urgent need for political violence insurance, making it the fastest-growing segment within the political risk insurance market.
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
Countries Analyzed
North America (US, Canada, Mexico)
Europe (Germany, UK, France, Spain, Italy, Russia, Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, South East Asia, Rest of Asia)
South America (Brazil, Argentina, Rest of South America)
Middle East and Africa (Saudi Arabia, UAE, Rest of Middle East, South Africa, Egypt, Rest of Africa)
AIG
Atradius
AXA XL
Chubb
Euler Hermes
Liberty Mutual
Lloyds of London
Marsh
Overseas Private Investment Corp
Zurich Insurance
*- List Not Exhaustive
TABLE OF CONTENTS
1 Introduction to 2024 Political Risk Insurance Market
1.1 Market Overview
1.2 Quick Facts
1.3 Scope/Objective of the Study
1.4 Market Definition
1.5 Countries and Regions Covered
1.6 Units, Currency, and Conversions
1.7 Industry Value Chain
2 Research Methodology
2.1 Market Size Estimation
2.2 Sources and Research Methodology
2.3 Data Triangulation
2.4 Assumptions and Limitations
3 Executive Summary
3.1 Global Political Risk Insurance Market Size Outlook, $ Million, 2021 to 2032
3.2 Political Risk Insurance Market Outlook by Type, $ Million, 2021 to 2032
3.3 Political Risk Insurance Market Outlook by Product, $ Million, 2021 to 2032
3.4 Political Risk Insurance Market Outlook by Application, $ Million, 2021 to 2032
3.5 Political Risk Insurance Market Outlook by Key Countries, $ Million, 2021 to 2032
4 Market Dynamics
4.1 Key Driving Forces of Political Risk Insurance Industry
4.2 Key Market Trends in Political Risk Insurance Industry
4.3 Potential Opportunities in Political Risk Insurance Industry
4.4 Key Challenges in Political Risk Insurance Industry
5 Market Factor Analysis
5.1 Value Chain Analysis
5.2 Competitive Landscape
5.2.1 Global Political Risk Insurance Market Share by Company (%), 2023
5.2.2 Product Offerings by Company
5.3 Porter’s Five Forces Analysis
5.4 Pricing Analysis and Outlook
6 Growth Outlook Across Scenarios
6.1 Growth Analysis-Case Scenario Definitions
6.2 Low Growth Scenario Forecasts
6.3 Reference Growth Scenario Forecasts
6.4 High Growth Scenario Forecasts
7 Global Political Risk Insurance Market Outlook by Segments
7.1 Political Risk Insurance Market Outlook by Segments, $ Million, 2021- 2032
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
8 North America Political Risk Insurance Market Analysis and Outlook To 2032
8.1 Introduction to North America Political Risk Insurance Markets in 2024
8.2 North America Political Risk Insurance Market Size Outlook by Country, 2021-2032
8.2.1 United States
8.2.2 Canada
8.2.3 Mexico
8.3 North America Political Risk Insurance Market size Outlook by Segments, 2021-2032
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
9 Europe Political Risk Insurance Market Analysis and Outlook To 2032
9.1 Introduction to Europe Political Risk Insurance Markets in 2024
9.2 Europe Political Risk Insurance Market Size Outlook by Country, 2021-2032
9.2.1 Germany
9.2.2 France
9.2.3 Spain
9.2.4 United Kingdom
9.2.4 Italy
9.2.5 Russia
9.2.6 Norway
9.2.7 Rest of Europe
9.3 Europe Political Risk Insurance Market Size Outlook by Segments, 2021-2032
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
10 Asia Pacific Political Risk Insurance Market Analysis and Outlook To 2032
10.1 Introduction to Asia Pacific Political Risk Insurance Markets in 2024
10.2 Asia Pacific Political Risk Insurance Market Size Outlook by Country, 2021-2032
10.2.1 China
10.2.2 India
10.2.3 Japan
10.2.4 South Korea
10.2.5 Indonesia
10.2.6 Malaysia
10.2.7 Australia
10.2.8 Rest of Asia Pacific
10.3 Asia Pacific Political Risk Insurance Market size Outlook by Segments, 2021-2032
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
11 South America Political Risk Insurance Market Analysis and Outlook To 2032
11.1 Introduction to South America Political Risk Insurance Markets in 2024
11.2 South America Political Risk Insurance Market Size Outlook by Country, 2021-2032
11.2.1 Brazil
11.2.2 Argentina
11.2.3 Rest of South America
11.3 South America Political Risk Insurance Market size Outlook by Segments, 2021-2032
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
12 Middle East and Africa Political Risk Insurance Market Analysis and Outlook To 2032
12.1 Introduction to Middle East and Africa Political Risk Insurance Markets in 2024
12.2 Middle East and Africa Political Risk Insurance Market Size Outlook by Country, 2021-2032
12.2.1 Saudi Arabia
12.2.2 UAE
12.2.3 Oman
12.2.4 Rest of Middle East
12.2.5 Egypt
12.2.6 Nigeria
12.2.7 South Africa
12.2.8 Rest of Africa
12.3 Middle East and Africa Political Risk Insurance Market size Outlook by Segments, 2021-2032
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
13 Company Profiles
13.1 Company Snapshot
13.2 SWOT Profiles
13.3 Products and Services
13.4 Recent Developments
13.5 Financial Profile
AIG
Atradius
AXA XL
Chubb
Euler Hermes
Liberty Mutual
Lloyds of London
Marsh
Overseas Private Investment Corp
Zurich Insurance
14 Appendix
14.1 Customization Offerings
14.2 Subscription Services
14.3 Related Reports
14.4 Publisher Expertise
By Type
Expropriation
Political Violence
Currency Inconvertibility
Contract Frustration
Non-payment
By Application
Individuals
Businesses
Global Political Risk Insurance Market Size is forecast to register a growth rate (CAGR) of 7.9% between 2024 and 2032.
Emerging Markets across Asia Pacific, Europe, and Americas present robust growth prospects.
AIG, Atradius, AXA XL, Chubb, Euler Hermes, Liberty Mutual, Lloyds of London, Marsh, Overseas Private Investment Corp, Zurich Insurance
Base Year- 2023; Estimated Year- 2024; Historic Period- 2018-2023; Forecast period- 2024 to 2032; Currency: Revenue (USD); Volume