Presentation
Investment Insurance protects investors or credit institutions issuing investment loans against risks of property damage and/or non-payment of amounts due to investors resulting from non-transfer, expropriation or political violence risks. The insurance covers up to 95% of the investor’s loss of an asset or of the receivable.
Any French-law company making a long-term investment abroad in a new or existing company, or any credit institution granting a bank loan to a foreign subsidiary, is eligible for Investment Insurance.
Examples of insurable investments: equity investments, guarantees granted on local medium and long-term loans, bank loans serving to finance assets, long-term shareholder loans, or fees on a licence concession agreement associated with the foreign company’s business.
An investment protection and recourse mechanism in the host country is required (bilateral investment protection agreement, ICSID ratification, etc.).
Benefits
The insurance is irrevocable and the premium rate is set for the entire term of the insurance policy, no matter what the political situation is in the host country.
Optional cover is available for failure to meet specific contractual commitments undertaken by the foreign country authorities in favour of the covered investment.
How much?
The premium rate depends on the host country and the features of the investment, it being stipulated that the premium is payable annually.
Administrative fees are charged to review insurance requests for concession agreements.
How it works
On receiving an insurance request, we analyse the request (type of investment, event of loss, investment protection agreement in place, environmental and social impact, etc.) and assess the risks involved.
After completing our analysis, the application is submitted for a decision either to the Internal Committee (for delegations granted by the French State to Bpifrance Assurance Export) or to the Interministerial Committee which rules case-by-case on the terms of the guarantee undertaking to be issued.
A guarantee undertaking, valid 6 months, is then issued and may be extended until the investment is actually carried out.
The policy may then be delivered to the investor and/or the credit institution, which triggers the invoicing of the premium.
Insured parties report their outstanding amounts annually and Bpifrance Assurance Export adjusts the covered amount according to the change in the investment.
