International Trade

Global Risk Rises

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...is where the role of careful risk selection and management comes in. Unistrat, for example, maintains a notably broad portfolio. Its largest geographical exposure is to Asia and Oceania – yet even that represents only 24.9 per cent of the company’s underwriting book (with the Middle East accounting for 18.8 per cent, Western Europe 14.2 per cent, eastern Europe 13.9 per cent, Sub-Saharan Africa 13 per cent, Latin America 7. 5 per cent, the Maghreb six per cent and North America 0.9 per cent.). In industry terms, banks – a special case – account for a third of the portfolio, but the balance is widely spread.

Premium rates continue to gently decline because of the abundance of underwriting capacity in the market. But it is careful management and risk selection that allows insurers specialising in emerging markets to live comfortably with this trend, despite the fact that levels of political risk around the world are high.

 

 

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