Focusing on a new era

Copying and distributing are prohibited without permission of the publisher

01 October 2001

The horrific and tragic events of 11 September have fundamentally changed the international trade profile. While business goes on, there is a strong need to revaluate political and credit risk for transactions in many markets, particularly in the Middle East and central Asia. Simon Pirani examines the immediate impact for trade in this region.

When a London-based political risk insurer took a call in the first week of October from a businessman wanting war cover for his factory at Termez on the Uzbek-Afghan border, the answer was no. ?That's like trying to get cover for your house after the kitchen has caught fire,? says the insurer. ?There are limits to everything.?

But the main shifts in the political risk and trade credit insurance markets following the 11 September attacks in the US and the military action that has ensued are results of a contraction of capacity, rather than the heightened risk in specific countries. In other words the market is being reordered ? thus far, anyway ? more by the shocks to the global economy as a whole, and the reinsurance market specifically, than by the military and political fallout in the Middle East, central and southern Asia and elsewhere.?It will be a supply-driven equation to a greater extent than it has...

You must be logged in to view this page. If you are already a registered user please log in. Alternatively, you can request a free trial or subscribe.

Already have an account?

Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.

Free trial

Taking a free trial will give you access to the latest news and analysis for two days (excluding some surveys and articles). Start your free trial today.