Mosaic Insurance coverage has introduced the enlargement of its political threat protection to the US market with the launch of an arbitration award default insurance coverage (AADI) product.

The brand new providing is designed to mitigate non-payment dangers related to arbitration awards, particularly in high-stakes disputes or conditions the place a state has a historical past of monetary defaults.

It additionally seeks to scale back the uncertainty for claimants and litigation funders, in addition to allow companies to monetize potential earnings from arbitration awards.

Moreover, it supplies complete protection for arbitral award values to guard towards administrative and monetary losses throughout arbitration or enforcement proceedings.

“Arbitration award default insurance coverage revolutionizes the panorama for claimants, regulation corporations, and litigation funders engaged in worldwide arbitration,” stated Tamar Katamadze (pictured), who was tapped to guide the product for Mosaic’s political threat division.

“This resolution supplies purchasers with the flexibility to navigate each length and liquidity dangers by each section of arbitration proceedings or in recognition and enforcement of arbitral awards.”

Finn McGuirk, world head of political threat, additionally emphasised the relevance of AADI amid “geopolitical and financial turbulence.”

“AADI is an more and more related product that protects traders towards sovereign default and enforcement threat when navigating the complexities of claims in worldwide arbitration,” he stated. “We’re happy to supply this revolutionary protection amongst our suite of merchandise.”

Mosaic’s AADI covers each pre-award and post-award eventualities, in line with an organization launch. It has capability of $65 million per threat with a time period of 5 years, which might be prolonged relying on particular person instances.

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