This guide explains what an overseas investment insurance policy is, how it works, and how to apply for the policy from UK Export Finance.
Overseas investment insurance (OII) can protect an investor in the United Kingdom against potential losses on overseas investments due to defined political events that may arise in a non-OECD country.
Any UK-based entity investing overseas is eligible, so long as:
- you are carrying on business in the UK, not simply acting as a conduit for investment outside the UK
- you are investing in an enterprise in a non-OECD country
- there is a lack of availability of cover from the private market on normal terms
- where cover is requested for a guarantee in respect of an overseas investment, the party giving the guarantee must have an interest in that enterprise.
How does it work?
A UK investor carrying on business in the UK wants political risk cover for an investment in a non-OECD country.
The UK investor approaches the private insurance market to seek a quote.
Private insurers are unable to provide appropriate cover.
The investor or its broker requests cover from UKEF.
UKEF conducts due diligence and eligibility checks and, if satisfied, offers a tailored OII policy.
How to apply
The steps for applying for OII are:
Check our country cover policy and indicators to find out what cover is available in the country you want to do business in.
Contact email@example.com to obtain an indication of how much premium you will need to pay.
Send your application form and supporting documentation to the Business Group at:
UK Export Finance
1 Horse Guards Road
For more detailed guidance, you can get in touch with your local export finance manager.
Contact our customer service team to get help with your overseas investment insurance. Call +44 (0)20 7271 8010 or email firstname.lastname@example.org.
Benefits of an Overseas Investment Insurance policy with UKEF
While some insurers will offer OII, they often only cover a limited number of circumstances and countries. UKEF helps to fill this gap by offering cover in a broader range of cases, in particular:
- challenging markets where the private sector may not be willing to offer cover
- popular markets in which capacity limits have already been reached
- long-term projects, up to 15 years
Other benefits include:
- cover against losses caused by specified risks, for up to 90% of the loss value
- the policy can be renewed annually, maintaining the same premium and terms for up to a maximum of 15 years
- you have the option to adjust the amount of cover with each renewal, to reflect the invested amount that year (given it does not exceed a specific maximum)
Full details of the risks covered are set out in the policy but they may 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
- restrictions on remittances, including exchange controls, imposed by the host state
There is normally no fee for the application. The premium payable for our cover is determined on a case by case basis.
This information 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.
Customer services +44 (0)20 7271 8010