Insurance broker – Trade Credit & Political Risk. Huh?

A lot of people have asked what exactly is the work i do. I’m not surprised ‘cos even though i specialised in Insurance for my university studies, i’ve never heard about Trade Credit & Political Risk insurance till just before i found this job. Trade Credit Ins. basically covers things like insolvency risks of debtors… and Political Risk Ins. (which is what i’m focusing on) covers risks such as expropriation / nationalisation of assets by a foreign government, expropriation of funds, property damage arising form political violence / war/civil war / terrorism, currency inconvertibility risks, etc.

Let me give u (in layman’s terms) an e.g. of what expropriation is. Last night, my mom borrowed my suitcase to pack her stuff for her holiday in Yunnnan. Although the suitcase was rightfully mine, my mom started to “nationalise” it by sticking stickers with her name all over the suitcase. Given that she didn’t outright make a claim to say the suitcase was now hers, from her actions alone, we can conclude that it’s a form of creeping expropriation.

So there you have it. A classic case of what expropriation is.