Zurich’s unit providing political risk and trade credit insurance in emerging markets has signed a memorandum of understanding (MOU) with the Islamic Corporation for Insurance of Investments and Export Credit (ICIEC).

The MOU establishes an expedited process for Zurich to consider reinsuring on a case-by-case basis both political risk and trade credit policies originated by the ICIEC. These policies involve investment and/or trade among the 35 ICIEC member countries, as well as between non-ICIEC member countries and ICIEC members. Zurich will not reinsure policies covering risks or customers in countries embargoed by the US.

Daniel Riordan, executive vice-president and managing director of Zurich’s emerging markets solutions unit, says, “This  MOU is another example of how Zurich’s expertise and financial strength can help organizations like ICIEC increase their capacity through reinsurance. This private/public agreement will enable ICIEC to provide even more support for the trade and investment objectives of its member countries, particularly with terms of medium-term trade credit business. Zurich looks forward to working with ICIEC and learning from its regional expertise.”

“ICIEC considers this agreement with Zurich’s emerging markets solutions group as a win-win proposition,” comments Abdel-Rahman Eltayeb Taha, ICIEC’s general manager. “Zurich will become more actively involved in ICIEC member countries due to our multilateral and preferred credit status, while ICIEC will positively impact the economic development of its members through additional underwriting capacity to support significantly larger volumes of foreign direct investment.”

Zurich underwrites political risk and trade credit insurance in emerging markets for financial institutions, multinational corporations, investors, exporters and infrastructure developers from offices in Washington, DC, Barcelona, Hong Kong, London, Sydney and Tokyo. Zurich is a member of the Berne Union, an international union of credit and investment insurers.

The Islamic Corporation for Insurance of Investments and Export Credit is an affiliate of the Islamic Development Bank (IsDB) group. It provides Islamic shariah-compatible credit and country risk insurance and reinsurance instruments.