In a commentary article for Trade and Forfaiting Review, James Esdaile, managing director, BPL Global, explains that heightened political instability and banks’ need to achieve capital relief has caused the specialist Credit and Political Risk insurance (CPRI) to grow exponentially in recent decades.
However a lack of cooperation between insurers, as well as the traditional manner of confidentiality the market carries, has caused the CPRI market to remain widely under the rug. Esdaile argues that through collective action, insurers can remain confidential and safeguard their franchise, yet still bring light to issues they all face such as regulation and other threats to the business. Other areas that could benefit from market cooperation are technological integration and product development.
By giving the CPRI market a coordinated voice, CPRI insurers can develop their own influence and help obligors become aware of the size and impact the market has.
The full article can be read here.