TATA AIG highlights need for political risk insurance amid global tensions

Bengaluru, August 05, 2024: TATA AIG General Insurance Company, one of India’s leading general insurance companies, underscores the crucial role of political risk insurance as an essential risk management tool for businesses navigating the challenges posed by current global geopolitical events. With ongoing crises such as the Red Sea conflict and the Russia-Ukraine war, Indian exporters are facing increased costs and risks in international trade.

Recent government data highlights a decline in India’s trade performance for the fiscal year 2023-24, with merchandise exports falling by 3.11% to $437.06 billion from $451.07 billion in 2022-23. Indian companies, despite a robust domestic market, are encountering uncertainties from geopolitical conflicts that hinder their efforts to expand internationally. These challenges are further compounded by a high global interest rate environment and rising energy prices.

Highlighting the criticality of political risk insurance, Deepak Kumar, Senior EVP at TATA AIG said” In today’s volatile geopolitical climate, political risk insurance is not just an option but a necessity for businesses looking to safeguard their international ventures. At Tata AIG, we are committed to providing comprehensive insurance solutions that empower our clients to focus on growth while we manage their risks.”

TATA AIG, as one of the market leaders, is committed to supporting Indian businesses with political risk insurance tailored to their specific needs. Their risk management solutions offer protection against contract frustration due to government actions or inactions, expropriation, political violence, and potential payment defaults by buyers.