Introduction

Arbitration Award Default (AAD) coverage has been commercially available since the mid-to-late 1990's. It has been offered by both private insurers like AIG, ACE, Zurich and several Lloyds syndicates, as well as government insurers like OPIC. By way of example, the political risk insurance covering the Patuha and Himpurna projects in Indonesia (which were the object of published arbitration awards against Indonesia) were covered by OPIC political risk insurance policies that not only provided standard expropriation cover, but also expressly and separately covered arbitration ...