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Political risk market holds steady amid events - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Political risk market holds steady amid events by Matthew Lerner Soldiers guard the harbor in Nuuk, Greenland, on Jan. 25. Despite recent tensions over the U.S.’s efforts to take over Greenland, “we haven’t seen an increase in requests for war exposure from the territory,” said Tim Strong of Aspen Insurance./Reuters Agents and Brokers , Current Issue , P/C Insurers Allianz , Axa , Marsh & McLennan , Willis Towers Watson Mar 1, 2026 The political risk insurance market remains stable against the backdrop of recent world events, including the U.S. capture of Venezuelan President Nicolás Maduro. There have been no wholesale withdrawals from the business or spikes in rates, industry sources said. Costs differ, however, based on location. The political risk market continues to attract capital despite world tumult, said Gayle Jacobs, Grand Rapids, Michigan-based senior vice president in the political risk and structured credit practice of Marsh Risk, formerly Marsh. Marsh Risk’s 2024 capacity guide shows total market capacity of just over $3.7 billion, rising to $4 billion in 2025. “So, additional capital of over a quarter of a billion dollars came into the political risk insurance market in the space of time when there were numerous high-profile global conflicts going on,” Ms. Jacobs said. The sector continues to grow, said Srdjan Todorovic, London-based global head of political violence and hostile environment solutions at Allianz Commercial. “We see an elevated level of interest and we see more buyers than ever in our space,” he said. “I don’t think this is a fundamentally different business today than it was three months ago or six months ago,” said Laura Burns, Washington-based political risk product leader, Americas, for Willis Towers Watson. Many of the events unfolding are the result of longer-term trends, Ms. Burns said. Insurers are not making significant changes, she said. “In their view, there isn’t a huge change where they’re saying, ‘We’re off risk in Latin America now’ or ‘We’re no longer going to rate Colombia.’ I haven’t heard that from anyone,” Ms. Burns said. Companies should focus on locations where they have important assets and assess their risk concentrations, rather than attempt to interpret events, she said. Current events have not redefined the political risk and political violence insurance business, said Rafael Docavo-Malvezzi, New York-based global chief underwriting officer, political risk credit and bond, at Axa XL. “Is it a different business? No, in the end, we offer similar products, similar types of coverage, but this is a world where conflict has increased,” he said. “The question is more, What are the opportunities going to be and what are the risks?” Several insurers have recently entered the political risk and credit insurance market, Mr. Docavo-Malvezzi said. Last year, London-based Atrium and Paris-based Descartes Insurance announced they would write coverage. “The growth in capacities is here to stay, because ultimately, whatever happens, there’s always going to be investment, there’s going to be trade,” Mr. Docavo-Malvezzi said. “It may have to be reconsidered and rethought, we may have to pause for a bit and reassess, but in the end, we’re here for the long term.” Additional capacity has been entering the crisis management market — including political risk — over the past 24 months, which has put pressure on rates, said Tim Strong, London-based head of crisis management for Aspen Insurance. Pricing for political risk cover remains stable in most locations. It’s beginning to flatten after a period of hardening, and the market remains active, Ms. Jacobs said. Rates are broadly down after two to three years of firming, said Allianz Commercial’s Mr. Todorovic, but the reductions do not cover all perils or all countries. “Certainly, on the whole, on our portfolios, we’re seeing rate reductions,” he said. Examples of hot spots that likely wouldn’t see reductions include conflict-torn areas such as Ukraine and the Middle East, Mr. Todorovic said. “At a macro level, there is a trend of rate reductions,” said Jak Carey, London-based assistant underwriter for Aspen Insurance, while in specific places such as Israel and Lebanon, “rates are still adequately reflecting an elevated geopolitical risk outlook.” Despite the recent focus on Greenland from the U.S. administration, “we haven’t seen an increase in requests for war exposure from the territory,” Mr. Strong said. Captured Venezuelan President Nicolás Maduro is escorted to a courthouse in New York on Jan. 5./Reuters Venezuela turmoil draws muted response from insurers after years of limited underwriting activity in the country The recent political upheaval in Venezuela has had little direct effect on the political risk insurance market, as the nation was largely off underwriters’ radar for years before the Trump administration’s intervention in January. Oil and other industrial sector nationalizations by the Hugo Chavez administration in 2007 resulted in huge losses for U.S. energy companies like ExxonMobil, which says it is still owed billions for seized property. Most insurers that incurred losses in Venezuela at the time largely stopped covering risks in the country and remained inactive after Nicolás Maduro succeeded Mr. Chavez as president in 2013. “Venezuela is almost a no-news story in the sense that the market, the political risk insurance market, had been closed there for 10, 15 or more years,” said Laura Burns, Washington-based political risk product leader, Americas, for Willis Towers Watson. Axa XL is not exposed to political risks in Venezuela, said Rafael Docavo-Malvezzi, New York-based global chief underwriting officer, political risk credit and bond, for the insurer. While some insurers may have limited exposure to Venezuela through the London market, substantial claims are not expected from recent events, sources said. Insurers are looking ahead to what might happen next regarding the U.S.’s stated intention to control the country’s oil sales. “What is going to be the approach to resource development … is it going to be a bit more of a shared partnership?” Mr. Docavo-Malvezzi said. “There’s a lot of concern about what comes after this,” said Gayle Jacobs, Grand Rapids, Michigan-based senior vice president in the political risk and structured credit practice of Marsh Risk, formerly Marsh. 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