Role of Political Risk Insurance
TATA AIG General Insurance emphasizes the importance of political risk insurance as a critical risk management tool for businesses amidst global geopolitical crises like the Red Sea conflict and the Russia-Ukraine war. These events have heightened risks and costs for Indian exporters, affecting international trade.
Impact on Trade
India’s trade performance for 2023-24 saw a decline, with merchandise exports dropping by 3.11% to $437.06 billion. Despite a strong domestic market, Indian companies face uncertainties due to geopolitical conflicts, high global interest rates, and rising energy prices.
TATA AIG’s Commitment
Deepak Kumar, Senior EVP at TATA AIG, stated that political risk insurance is essential for businesses to safeguard their international ventures. TATA AIG offers comprehensive insurance solutions to manage risks like contract frustration, expropriation, political violence, and payment defaults, allowing clients to focus on growth.
