Zurich Insurance has withdrawn from the independent political risk market and will wind up its global trade credit business.
In a statement, the Swiss-based insurer Commercial Risk Europe stated that it would no longer offer new independent political risk insurance.
The withdrawal applies to stand-alone insurances that provide coverage related to losses of equity / assets caused by political dangers such as confiscation, expropriation, nationalization, deprivation, political violence, currency convertibility and government measures that prevent the implementation of commercial contracts. This decision does not affect any other business in Zurich, said the insurer.
"These decisions were taken after Zurich decided that these portfolios no longer support our long-term core strategy," the statement said.
In a further battle for risk managers, Zurich will also phase out its global credit insurance and short-term multi-buyer insurance portfolios, with the exception of some countries.
Zurich Germany and Zurich Switzerland will continue to offer short-term commercial credit insurance to their home markets, selected UK customers via Germany and some customers in other EU countries. Zurich will no longer write a new STMB insurance from the US and UK
"For the rest of 2021
Zurich said it would make "every effort" to help customers affected by the decision to withdraw from the independent political risk market. "We will continue to service accounts and help our clients and brokers navigate to other insurance companies," it said.
Commercial Risk Europe is a sister publication of Business Insurance. More stories from CRE here. Catalog