Investment Insurance FAQs

What is Investment Insurance?
Investment insurance includes a large range of products designed to cover international investments. These risks include Political Risks, which are associated with unlawful or questionable government actions that impact a company’s ability to conduct business.

Investment insurance also covers non-payment risks, wrongful calls on performance bonds and damage to your property or loss of revenue from business interruption due to politically motivated violence or terrorism and sabotage events.

For this product, ATI considers indemnity and tenors on a case by case basis.

How do I know I need Investment Insurance?
You may need to consider ATI’s Investment solutions if you answer yes to one of the following questions:

Do you sell your products or services to governments or government agencies?
Have you ever experienced overdue payments on government contracts?
Has your license suddenly been cancelled due to a change in government legislation?
Have you ever experienced any losses due to bad debt?
Do you have any outstanding commercial debts that you cannot collect?
Do you need help to assess the financial status of your customers?
Do you regularly experience problems with cash flow?
Have any of your customers ever gone into bankruptcy?
Do you regularly sell or plan to sell to customers in foreign markets?
Do you plan to sell to new customers?

What are the benefits of Investment Insurance?
ATI’s solutions have many benefits designed to increase your ability to achieve success in Africa:

Protection against political risks (government actions affecting foreign direct investments)
Cover against damage or loss of your goods due to political violence, terrorism & sabotage
Increasing access to more accessible financing
Access to supplier credit
A solution to currency issues on cross-border transactions
Non-payment of goods supplied on credit
Access to credit information which can be crucial when securing new clients
Increased knowledge about credit insurance facilities and enhanced credit management within your company

What does ATI cover?
Clients with projects, investments, assets and contracts in foreign markets typically require a broad range of risk solutions.

For investors, ATI has supported many types of investments including equity participation in projects or companies and investment loans. For medium to long term infrastructure loans, ATI can cover repayment periods of up to 15 years. ATI can protect your investment against loss resulting from risks that are triggered by political or government events as well as commercial or non-payment risks.

ATI covers these risks:

Breach of contract: non-fulfillment or non-compliance with agreements or contracts entered into by the government bodies within the host country
Expropriation: all forms of nationalisation and confiscation from the company in the host country
Transfer restrictions: an inability to transfer invested funds as a result of currency shortages or a moratorium imposed by the host country
War (including political violence, terrorism & sabotage): this protects your investment against the full range of loss stemming from political or terrorist motivated acts
Non-payment: this can protect your investments against non-payment risks from both private and public companies
Wrongful calls on your bonds: International business commonly demands that you post a performance bond, which could face the risk of being wrongfully called. You can protect your investments against this uncertainty with a risk solution that frees up your working capital which you would otherwise have to use to reimburse your bank

Eligibility
In order for ATI to support a transaction, the investment or project must be located in at least one of our African member countries.

Application
Here are four simple steps to applying for ATI’s insurance:

Submit an insurance enquiry form
Once the enquiry is approved, ATI issues a Non-Binding Indication (NBI)
If the terms and conditions quoted on the NBI are acceptable to you, ATI will ask you to submit an application for insurance and supporting documents

To learn more contact us at underwriting@ati-aca.org