Mosaic Insurance, a specialist firm, has extended its political risk coverage to the US market and launched a new insurance product named Arbitration Award Default Insurance (AADI), offering a global coverage limit of $65 million.
AADI is designed to compensate parties in cases where sovereign states breach investment treaties or contractual obligations.
It provides coverage both before and after arbitration decisions, with a $65 million capacity per risk and a five-year term for policyholders, extendable on a case-by-case basis.
AADI shields claimants from non-payment of arbitration awards by states, reduces uncertainty for international arbitration parties, facilitates businesses in accessing award-related funds before or after awards, and protects against financial losses during arbitration or enforcement proceedings.
Finn McGuirk, Global Head of Political Risk at Mosaic, explains, “Amid geopolitical and economic turbulence, AADI is an increasingly relevant product that protects investors against sovereign default and enforcement risk when navigating the complexities of claims in international arbitration.”
Tamar Katamadze, leading the product for Mosaic’s political risk division from New York, notes, “Arbitration award default insurance revolutionises the landscape for claimants, law firms, and litigation funders engaged in international arbitration.”
“This solution provides clients with the ability to navigate both duration and liquidity risks through every phase of arbitration proceedings or in recognition and enforcement of arbitral awards,” Katamadze adds.
