
Political risk insurance
Political risk insurance (PRI) is a type of insurance that helps businesses protect their investments in foreign countries against potential losses due to political events. This can include risks like government instability, expropriation of assets, war, or civil unrest. By purchasing PRI, companies can safeguard themselves financially if a hostile political environment negatively impacts their operations or leads to significant losses. This insurance promotes international investment by providing a safety net that encourages businesses to enter markets that might otherwise be considered too risky.