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The analysis starts with the organisation’s operating model. For Political Risk, the relevant question is not whether a policy contains a familiar list of covers, but whether it follows the financial consequences of political violence, expropriation, currency restriction, government action or frustration of a public contract. The exposure must be described in language that connects operational facts to loss measurement, policy triggers and management decisions. That approach helps insurers understand the risk, helps the client compare quotations on substance rather than headline premium, and gives the claims team a coherent record of why limits, sublimits, waiting periods and conditions were selected.
The research brief examines how a project remains physically intact but government action and civil disturbance prevent access, payment and normal operations. This is deliberately narrower than a generic insurance review: it identifies the operational dependency, estimates the sequence of financial effects and tests which policy clauses must respond. The working evidence includes country-by-country asset schedules, contracts, licences, revenue flows, financing terms, security plans, counterparties, evacuation protocols and payment routes. Each data point has a purpose. Values support limit selection, contracts expose risk transfer, recovery assumptions shape interruption periods, and incident records reveal whether the proposed retention is commercially realistic.
Terrorism, sabotage, riots, civil commotion, war and related perils. The analytical task is to determine the trigger, credible severity, available controls, financial retention and evidence that would be required after a loss.
Government action that deprives the insured of an investment or asset. The analytical task is to determine the trigger, credible severity, available controls, financial retention and evidence that would be required after a loss.
Inability to convert or transfer lawful funds. The analytical task is to determine the trigger, credible severity, available controls, financial retention and evidence that would be required after a loss.
Defined failure of a public counterparty or government obligation. The analytical task is to determine the trigger, credible severity, available controls, financial retention and evidence that would be required after a loss.
Evacuation, denial of access and revenue interruption scenarios. The analytical task is to determine the trigger, credible severity, available controls, financial retention and evidence that would be required after a loss.
The loss chain matters because political change can damage assets, prevent access, interrupt revenue, trap lawful funds, delay debt service and undermine the contractual assumptions on which a project was financed. Reviewing the components separately can hide accumulation. Kompetenz therefore connects them into one scenario and records which department owns each assumption.
The principal wording review concentrates on definitions of terrorism and political violence, deprivation periods, expropriation triggers, currency inconvertibility, contract frustration, waiting periods and interaction with property cover. These provisions determine how the policy behaves when facts are incomplete and time is limited. Broad marketing descriptions do not resolve questions about causation, allocation, consent, aggregation or proof. The research output therefore pairs every material scenario with a specific clause, a proposed improvement and a fallback position for negotiation.
A second source of friction is governance. project leadership, treasury, legal, security, lenders, government-relations teams and local operations may each hold part of the information, but no single team sees the whole loss pathway. A structured workshop reconciles the different versions before the submission reaches the market. This reduces contradictory answers, highlights material controls and prevents an insurer from pricing uncertainty that the organisation could have explained.
Materiality is assessed through severity, duration, liquidity and recoverability. The model asks how quickly costs arise, which expenses must be paid before an insurer confirms cover, whether revenue returns immediately or gradually, and how much loss the organisation can retain without disrupting investment or debt obligations. Stress testing should include a project remains physically intact but government action and civil disturbance prevent access, payment and normal operations. The result is not one artificial number; it is a range that supports limit selection and transparent management judgement.
Kompetenz Insurance Broker converts the findings into an underwriting narrative, a prioritised wording schedule and a negotiation plan. The broker can challenge inconsistent assumptions, compare insurer responses against the same scenarios and preserve the reasoning behind accepted trade-offs. After placement, the research becomes a practical reference for notification, evidence collection and renewal improvement rather than a report that is filed and forgotten.
