Quick guide to Overseas investment insurance
This page is about UK Export Finance’s overseas investment insurance policy, and explains what the policy is, how it works, its benefits, its key features and how to apply for the policy.
What is an overseas investment insurance policy?
An overseas investment insurance policy covers the risk of loss resulting from certain political events in connection with an investment made by an investor in the United Kingdom in an enterprise outside the United Kingdom.
The policy can also cover losses arising in connection with a guarantee given by the insured in respect of an investment made by another person in an enterprise outside the United Kingdom in which the insured has an interest.
What are the benefits of an overseas investment insurance policy?
The benefits are:
- any investment of resources may be considered for cover, including loans or subscriptions for shares;
- indirect investments and guarantees given to other investors may also be covered.
- up to 90% of losses can be covered resulting from the specified events;
- the policy may be renewed annually on the same terms and premium rate and run for up to 15 years;
- on each renewal the investor can adjust the amount of cover to reflect the amount of its investment in that year provided that it does not exceed a specified maximum insured amount.
- Risks covered
- Full details of the risks covered are set out in the policy but they include:
- war, civil war, revolution and insurrection in the host state;
- expropriation or nationalisation of the enterprise in which the investment is made (or of its property) contrary to international law; and
- restrictions on remittances, including exchange controls, imposed by the host state.
- The investor and the investment must meet the following criteria:
- the investor must be carrying on business in the United Kingdom and not simply acting as a conduit for investment from outside the United kingdom;
- the investment must be made in an enterprise outside the United Kingdom;
- where cover is requested for a guarantee given in respect of an investment in an enterprise, the person giving the guarantee must have an interest in that enterprise.
There is no fee for the application. The premium payable for our cover is determined on a case by case basis.
How to apply
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The information available in this article is not intended to be a comprehensive description of our overseas investment insurance and many details which are relevant to particular circumstances may have been omitted. Investors must read the policy to see whether it meets their needs.
When considering applications, underwriters will look at each case on its merits.