Authorizations and exposure

• Currency inconvertibility and transfer restriction cover:
• Currency depreciation is not covered
• In the event of a claim, MIGA pays compensation in the currency specified in the contract of the guarantee
• Expropriation cover:
• In addition to outright nationalization and confiscation, “creeping expropriation”—a series of acts that, over time, have an expropriatory effect—is also covered
• Coverage is available on a limited basis for partial expropriation (e.g., confiscation of funds or tangible assets)
• War and civil disturbance cover:
• This coverage encompasses not only violence in the host country directed against a host country government, but also against foreign governments or foreign investments, including the investor’s government or nationality
• Breach of contract cover:
• Breach of contract coverage may be extended to the contractual obligations of state-owned enterprises in certain circumstances

• Non-honoring of financial obligations:
• Availability of this product is limited to governments/state-owned enterprises (SOEs) with satisfactory credit ratings
• Availability period: Up to 15 years (20 in some cases)
• Claim determination and payment are subject to defined waiting periods
• Coverage: Up to 95 percent of principal and interest

• Designed to facilitate investment into SMEs involved in the finance, agribusiness, manufacturing, and services sectors
• SIP offers:
• Coverage up to USD 10 million (the actual size of the investment may be bigger)
• A guarantee package covering currency transfer restriction, expropriation, and war, terrorism, and civil disturbance
• A quick approval process
• In order to qualify, the project enterprise must fulfill at least two of the following criteria:
• No more than 300 employees
• Total assets not more than USD 15 million
• Total annual sales not more than USD 15 million

• Provides protection against losses resulting from the failure of a state-owned bank or public authority to pay an unconditional financial obligation related to a trade finance transaction
• MIGA can issue a guarantee for a trade loan against the risk of a nonpayment by a state-owned bank, state-owned enterprise, or sovereign or sub-sovereign entity

• Designed for global retail banks with significant exposures to central banks in emerging markets
• MIGA can insure mandatory reserves held by a parent bank’s emerging-market subsidiaries, which reduces the counterparty risk and can lead to a reduction in the bank’s risk-weighted assets (RWA) on a consolidated basis

• Guarantee coverage to private equity funds that meet eligibility criteria and commit to MIGA's environmental, social, and anti-corruption policies
• Tenor: 2 to 3 years
• Fund managers may use this contract to raise funds from institutional investors who are interested in taking the commercial risks (and returns) associated with investments
• MIGA then provides political risk insurance to each underlying investment using our regular underwriting process

• Terms of coverages:
• Pricing: Premiums are determined on a per-project basis and vary by country, sector, transaction, and the type of risk insured; premiums are due at the beginning of each contract period
• Duration of guarantee: Minimum of 1 year and maximum of 15 years (possibly 20 years depending on the nature of the project)
• Amount of coverage for equity investments: Up to 90%, plus up to an additional 500% of the investment contribution to cover earnings attributable to, and retained in, the project
• Amount of coverage for loans and loan guarantees: Up to 95% of the principal (or higher as determined on a case-by-case basis), plus up to 150% of the principal to cover interest that accrues over the term of the loan
• Amount of coverage for technical assistance contracts and other contractual agreements: Up to 90% of the total value of payments due under the insured agreement (up to 95% in exceptional circumstances)
• An investor is required to remain at risk for a portion of any loss
• MIGA can currently issue up to USD 250 million of coverage on its own account for a single project, and can cover significantly higher additional amounts through reinsurance arrangements; it can also mobilize additional coverage through co-insurance programs with other political risk insurers
• MIGA has no minimum investment amount

• Fees and pricing:
• Definitive application fee: USD 5,000 for cover of less than USD 25 million, and USD 10,000 for larger amounts; the application fee is applied toward the initial premium, and is refunded if MIGA rejects the project for any reason
• Processing fee: Additional fees may be required for complex projects (e.g., fees may be required to cover the cost of site visits for environmental and social due diligence)
• Syndication fee: If applicable, a fee will be applied when MIGA arranges a project’s total insurance requirements through reinsurance

• 2024: World Bank Group prepares major overhaul to guarantee business

• 2023: United Kingdom provides GBP 20 million to MIGA’s Ukraine Trust Fund