Contractors looking for cover protecting them against non-performance of the Iraqi government will find an "expanding market", according to political risk specialists BPL Global.
The Lloyd's broker said that cover for non-performance of barter, pre-export, and structured trade transactions secured on Iraqi oil could be bought for premium of around 1.5%-2.4% of the cover limit per annum.
"These types of transaction have begun and cover for non-performance on this type of transaction is available. Capacity and tenor are likely to be cautious and short initially but we expect capacity will build and terms lengthen immediately once a successful track record is demonstrated," said BPL Global.
Cover for contractors' plants and equipment and other mobile assets is available at a premium of 1%-2% of the cover limit per annum.
"This type of cover is available from certain underwriters, depending on the type of equipment, the location in Iraq and the security arrangements," BPL Global said.
