Global: Structured credit and political risk insurance market capacity rises to meet demand

Source: Middle East Insurance Review | Apr 2025

To accommodate rising demand, capacity in the structured credit and political risk (SCPR) insurance market has grown with more insurers capable of writing long-term risks than ever before, says Gallagher, one of the world’s leading insurance brokerage, risk management and consulting firms.

In its ‘Structured Credit and Political Risk (SCPR) Insurance Market Report’ for 1Q2025, Gallagher says that the SCPR insurance market remains proactive and agile as it faces new types of risk in increasingly challenging jurisdictions.

“The geopolitical frictions, notably across the Middle East and Africa, and the shift in economic and foreign policy following Donald Trump’s second inauguration, are certain to continue influencing trade and investment opportunities,” the report reads.

The fallout is that corporates and investors will need to remain vigilant whilst adapting their risk management strategies to navigate these evolving challenges effectively – SCPR insurance is becoming an increasingly vital tool for these companies.

Capacity growth in the SCPR market is clearly illustrated in the ‘Market Capacity’ section of the report which shows that for both political risks and contract frustration, there is capacity worth around $3.5bn for any one risk. M

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