Are there discernible trends regarding the countries for which companies seek coverage?
There are numerous reasons why companies take out these types of coverages. Some companies will buy cover in respect of all emerging market exposures, some will buy in selected emerging markets, and others will buy, for example, where exposures exceed a certain amount in any one country. It goes without saying that enquiries increase in response to particular situations and events. For example, underwriters have seen a steady increase in Latin American enquiries in response to the leftward shift in domestic politics in a number of countries, as well as a more panicked inflow of enquiries after the eruption of violence in Lebanon. One other important factor behind purchase is that of financing banks, which often require political risk and/or terrorism coverage to be taken out before they will lend.
