With growing sophistication of commercial enterprises in the MENASA region, businesses are facing hazards which require more sophisticated risk management responses. Dic is responding to this need by bringing underwriting capabilities and capacities from across the international insurance markets to respond to these needs.
Spearheading this initiative is Dubai Insurance's Financial Products Department. Its portfolio of insurance products, current and future is dedicated to protecting MENASA businesses from unconventional financial & operational risks which are faced both domestically & internationally.
To date, the department offers insurance products in the fields of:
All level plans include access to worldwide emergency assistance, outpatient cover, inpatient cover and day patient cover and grant you the access for comprehensive cover that comprise but not limited to:
• POLITICAL RISK INSURANCE
This coverage protects any business involved in international trade and/or investment against any government actions or lack thereof which cause the business a loss. ‘CEND POLICIES’ protect a business which maintains assets in foreign countries (permanent or mobile) against a host country’s government which confiscates, expropriates, nationalizes or deprives the owner of the assets of any right which had been granted to it at the time of the investment. ‘CONTRACT FRUSTRATION POLICIES’ protect businesses entering into international export, import or service contracts, where the contract is cancelled or frustrated in any other way by the host government – cancellations of previously granted licenses and permits, non-payments of dues, non- honoring of settlements determined in accordance with conflict resolution clauses in the underlying contracts. ‘UNFAIR CALLING OF DEMAND BOND POLICIES’ protects the international business against the calling of bonds, whether these are Bid Bonds, Advance Payment Bonds or performance Bonds, by host governments when the business has complied with all underlying conditions. Insurance capacity in the market for acceptable risks can total up to as much as a couple of hundred million U.S. dollars for CEND risks. For other risks total capacity can be as high as USD 50 million. POLICY PERIODS usually do not extend beyond 3 years, but for contracts could be as long as 5. PREMIUM RATES are generally lower for CEND policies (usually less than 1 percent p.a.) than contract related policies which can be as expensive as 4 to 5 percent p.a. on outstanding exposures (effectively lowering the rate over the life of the contract). Premium rates are subject to changes depending on the macro-economic and geo-political conditions in the Host country, as are the underwriting acceptabilities of countries.
• RESIDUAL VALUE INSURANCE
This insurance is to protect the insured from a decrease in market value of a properly maintained asset (defined contractually) at a defined point in time. The Insurer’s liability is limited to the difference, if any, between the asset’s market value and its guaranteed price at a specific point of time. Pre-mature sale of the asset or a physical loss event centered about the asset, causes this policy to lapse (with no refund of premium).
This insurance has many applications which benefit the Insured, including
Irrespective of the asset type, each submission‘s underwriting is based on:
Rates for “market” residual value cover vary significantly, depending on:
• PROJECT GUARANTEES & CREDIT ENHANCEMENT
Project Financing can comprise
As part of the project funding process, financial product policies which can enhance the credit of projects can, depending on the risks perceived by financiers, include
When these policies are used for credit enhancement salient features include
Underwriting requirements for acceptance of any submission
Some of the de rigueur analysis of a submission to include
For further details or assistance, please e-mail us at: info@dubins.ae or contact to
+971 4 2693030 our Dubai Branch.