Given the unprecedented—by recent standards—financial crisis that has devastated the world financial system and extended its reach into a number of other sectors, political risk insurance has become even more relevant. At the same time, questions remain as to whether PRI really covers those risks that investors need covered the most. Put another way, will the coverage offered by PRI providers actually cover events, and will the insurers step up to the plate when the situation in a country deteriorates rapidly and begins to threaten investment projects? Difficulties in the financial markets have also resulted in the evaporation of available credit as lenders have refocused their lending to keeping themselves.
