The Global Polycrisis and Political Risk Insurance: What Arbitration Practitioners Need to Know

Presentation

Risks for foreign direct investment are more dynamic and more varied than ever before. The war in Ukraine, chaos in global energy markets, sanctions, cyber conflict and resource nationalism are just some of the forces in play. The World Economic Forum in its 2023 Global Risks Report warns of a global polycrisis, arising where concurrent and disparate shocks interact. Increasingly, companies are looking to political risk insurance (PRI) to manage their exposure to the tumultuous geopolitical landscape. Once a niche insurance product, demand for PRI is rising. This poses the question: as arbitration practitioners, what do we need to anticipate and understand about PRI?

Shearman & Sterling’s multidisciplinary team, comprising disputes, regulatory and sanctions lawyers, will be joined by expert guests to offer their insights into political risk insurance as a method of risk mitigation, and its potential impact on arbitration.

Discussion topics will include:

• What is PRI? What risks does it cover? Who typically buys it?
• The possibility and nature of disputes between insurer and insured.
• The interaction between PRI and the investment treaty regime, including questions of standing to bring claims, damages, and enforcement.

The event will be hybrid, taking place at the Paris office of Shearman & Sterling and remotely. Webinar login information will be sent upon confirmation of registration. For those joining in person, a Parisian-style afternoon tea will be served.