The next big opportunity? Demand for credit and political risk insurance surges amid global shocks
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In today’s ever-changing risk landscape, investors could be forgiven for feeling gloomy. But alongside risk comes opportunity – with the right protection.
Our latest analysis of the credit and political risk insurance (CPRI) market highlights the megatrends driving the risk landscape and shows how each offers potential for investors.
We also explore credit and political risk insurance in detail, highlighting the diverse products available, and showing how this sophisticated financial tool can help businesses and investors optimise return on capital and unlock these exciting new opportunities.
A riskier world
A year ago, we argued that the risk landscape was undergoing structural change. That the series of crises since the turn of the decade had brought with it a permanent shift to a riskier world –with far-reaching implications.
Halfway through 2025, and our predictions are being borne out.
The world is grappling with rising geopolitical tension, financial market flux, trade uncertainty and supply chain recalibration on a level few predicted at the start of the year.
Add elevated uncertainty around how major geopolitical fault lines will shift into the mix, and it’s no surprise many businesses, governments and investors are struggling – not just to make long-term decisions, but to simply manage risk and capital day-to-day.
Read our latest report
Read our latest report on the credit and political risk market: Opportunity in flux
Change brings opportunity
Thankfully, it’s not all bad news.
Despite the negative backdrop, our latest analysis reaffirms that risk is also opportunity.
Our report examines three of the most compelling trends driving market dynamics today:
- how policy uncertainty is diverting new capital inflows into new markets and asset classes as investors diversify
- how tariffs are leading export-driven economies to form new areas of multinational cooperation and expand existing partnerships to mitigate trade war spillovers
- how the scramble for critical minerals is forcing major advanced economies to de-risk supply chains through friendshoring, diversification and collaboration
Optimise returns
Against this backdrop, CPRI has never been more relevant.
It’s a highly sophisticated and diverse offering – which is as much a financial tool to optimise return on capital proactively, as it is a contract to indemnify losses.
From trade credit cover against the insolvency of international short-term credit buyers to non-payment insurance (NPI) for banks to maximise return on capital and more, the product mapping in our report details how the CPRI market provides the certainty needed to trade and invest.
Demand surging
It’s no surprise then to see demand for CPRI surging.
Based on a proprietary Howden survey, we report a 33% increase in the likelihood of first-time buyers purchasing cover against political risks in response to tariff uncertainty.
Our report also examines the supply side of the market and shows that despite strong profitability, headline growth has not developed at the pace of other high-profile business lines.
Bringing our analysis of demand and supply together, it’s clear that this often-overlooked area of the market presents a compelling case from both a buyer and capacity provider perspective – now more than ever.
Put simply, CPRI is enabling commerce worldwide by allowing businesses to invest, while delivering underwriting performance typically unsurpassed elsewhere.
Choose the best
For businesses and investors, today’s market dynamics demand the very best intermediary expertise and leadership: experience, market-leading thought leadership and unrivalled relationships with (re)insurers.
Our CPRI team exists to provide just that. We look forward to supporting clients through this period of instability and working on their behalf to secure the best coverage available in the marketplace.