Ensuring that every child has a future is the driving force behind Save the Children’s work. This century-old international non-governmental organization (NGO) works to improve children’s lives by responding to emergencies, delivering development programs and running advocacy campaigns.
At Allianz Trade, we’re proud to partner with Save the Children by issuing a political risk insurance policy to help protect the NGO’s funds. This year, we renewed the policy for the fifth consecutive year of coverage – and doubled our participation.
Protecting life-saving resources
Since 2020, Allianz Trade has issued a political risk insurance policy that helps safeguard Save the Children’s international funds in countries where the threat of confiscation is high. Specifically, the cover protects against expropriation (government seizure of funds) as well as currency inconvertibility and non-transfer (inability to convert local currency or move funds abroad). Our Specialty Credit team issues the syndicated, multi-country policy at a nominal premium.
2024 is a landmark year for our partnership: Allianz Trade is doubling the policy’s limit, in addition to expanding country coverage. We made this decision because we believe Save the Children’s work is absolutely vital. They go right into the middle of conflict zones and helps the most vulnerable population: children.
Save the Children operates in countries all over the world, each with a unique political and economic context. This increases the NGO’s exposure to political risk, making insurance coverage all the more crucial. The consequences of political risk for global NGOs like Save the Children – and the populations they serve – can’t be overstated. Let’s take a closer look at potential threats organizations face when operating abroad and how they can protect themselves.
What is political risk?
When an organization operates or invests overseas, it faces a number of risks, ranging from financial challenges to those stemming from political actors and events. These political risks include regime changes, shifts in government policies or laws, state confiscation of assets, and conflicts such as war, civil war, coups d’état and political violence.
Organizations can manage these risks by protecting themselves with political risk insurance, which covers specific transactions or events – unlike trade credit insurance, which safeguards receivables. There are three types of political risk insurance, all of which we provide at Allianz Trade:
- Pure political risk: covers assets against government actions and political events
- Credit non-payment: protects against non-payment by private-sector entities
- Contract frustration: covers non-payment by sovereign or public-sector entities
Advancing social good
Amid escalating global conflicts, we’re proud to strengthen our political risk coverage for Save the Children. This partnership is a natural fit for Allianz Trade. We help organizations face an uncertain future with confidence, and we’re pleased to extend that support to Save the Children’s life-saving work. Our insurance policy enables the NGO to operate in over a dozen high-risk countries without fearing the consequences of asset seizure.
At Allianz Trade, we believe the financial services sector can play a key role in advancing social good. By financing and insuring work with a positive impact, from humanitarian efforts to renewable energy projects, we aim to lead as a force for change.
