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Marsh launches broad-based political risk platform

Broker Marsh has launched a new platform to offer multinational companies up to $100mn of cover per risk for foreign-based assets or equipment in transit, which it says will allow companies to pursue opportunities overseas against a background of rising political risk.

The facility's broad inclusion of perils - including such risks as terrorism, rebellion and quarantine - removes uncertainty over how to classify emerging-market events, the head of Bowring Marsh's terrorism and political violence team, Chris Parker, said.

This follows the civil unrest in Thailand earlier this year, which has left some buyers of terrorism insurance without payouts after insurers disputed how to classify the events, as previously covered by The Insurance Insider.

The new Mobile Asset and Commodity Expropriation (MACE) insurance facility is backed by Lloyd's insurers, co-led by Ascot Syndicate 1414 and Ark Syndicate 4020, according to reports.

Julian Macey-Dare, international head of Marsh's political risks and structured credit business said that companies trading overseas faced a much more complex risk landscape since the recession amid increasing terrorist activity and political unrest.

"Combined with a lack of liquidity and lending constraints, companies now have much higher levels of risk on their balance sheets," she explained.

The product has no minimum premium requirement and has non-cancellable policy terms of up to three years.

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