Insuring against political risk is a dynamic, challenging issue for insurers, reinsurers, and businesses alike. We have helped clients where civil violence has affected operations, supply chains, travel and business continuity. We’re also advised on claims as the result of government expropriation of assets and where there has been restriction on the repatriation of funds.
Even in domestic markets, governments can be unpredictable. An increasing part of our team’s work is in the domestic Australian and New Zealand markets, advising on claims where policy changes dramatically affect the business environment.
We represented reinsurers in arbitration proceedings (under the ARIAS rules) arising out of a US$22 million claim made under a political violence insurance policy relating to the seizure of an insured property by militants in Iraq in 2015. The claim was withdrawn shortly after reinsurers issued arbitration proceedings seeking declaratory relief against insurers.
We advised insurers on claims made under political violence and stand-alone terrorism insurance policies arising out of incidents involving militant groups in Iraq, Algeria and Nigeria.
We have advised insurers on claims made under kidnap and ransom policies relating to kidnappings which allegedly occurred in Syria and an alleged extortion by authorities in Mexico.
We defended a claim brought by an insured against insurers for losses allegedly suffered as a result of the Abu Dhabi government’s failure to pay for the supply of education services. Zurich Australian Insurance Limited v Cognition Education Limited  NZSC 188 – now the leading New Zealand authority and which brought New Zealand in line with the UNCITRAL Model Law.