The G20 Saudi Presidency for 2020 requested that Multilateral Development Banks (MDBs) conduct a stock-take study on “Best Practices of MDBs and Specialized Multilateral Insurers (SMIs) in Political Risk Insurance for Equity Investments, Medium and Long-Term (MLT) Debt Investments and other Insurance Solutions.”

Recognizing ICIEC -IsDB Group’s Insurance arm- expertise in Political Risk Insurance, the G20 Saudi Presidency mandated the Corporation, in coordination with other MDBs, to prepare the study for the Chair of the G20 International Financial Architecture (IFA) Working Group.

The study analyzes the current state of the political risk and credit insurance market for equity investments and MLT debt investments. It also identifies best practices and potential gaps in the market and provides recommendations on how identified gaps could be filled, particularly for low income countries and fragile states. Based on the study, four recommendations were developed for both users and providers of credit and political risk cover for equity and MLT debt.

ICIEC with peer Specialized Multilateral Insurers (SMIs) and ECAs continued commitment to the UN Sustainable Development Goals (SDGs) is reflected in the report through the examination of possible solutions for encouraging equity investments and MLT debt investments that can scale up capital flows to achieve the SDGs.

ICIEC CEO, Mr. Oussama KAISSI asserts, “the findings of this report will shape ICIEC’s future strategic focus from one that is centered on strengthening intra-OIC economic relations to expanding our role in insuring transactions that strengthen South-South trade.”

As the only Shariah compliant multilateral trade and investment insurer, ICIEC has a leadership role in developing the Islamic Finance Trade Credit & Political Risk Insurance industry. Building on the findings and recommendations of the study, ICIEC is working closely with the IsDB Group, other MDBs, and SMIs to educate the market on the benefits of Political Risk Insurance. ICIEC is also exploring further innovative product offerings in order to fill the exposed market gaps in member countries, with the goal of achieving a better and more sustainable future for all.