An Overview of Political Risk Insurance - May, 2005
نویسندگان
چکیده
In conjunction with the Committee on the Global Financial System Working Group project on foreign direct investment in emerging market financial sectors, staff of the U.S. Federal Reserve examined the market for political risk insurance (PRI) and its use by financial institutions to mitigate emerging market risks. A series of meetings were undertaken in 2003 with U.S. commercial and investment banks, and public and private insurers active in the market. This note summarizes the information gathered in those meetings, subsequent follow-up, and through other research. It provides a brief overview of the PRI product and characteristics of the market, and discusses the effectiveness of PRI as a risk mitigant.
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