Uninsurability is therefore a somewhat misleading term as it typically does not mean that insurance is not available at all. The usual definition of uninsurability in respect of a particular risk covers:
(a) the unavailability of insurance on the international insurance market by insurers of an adequate credit rating/reputable insurers of good standing; and
(b) where insurance premiums are prohibitively high (not merely more expensive) - for example, at such a level that the risk is not generally being insured against in the worldwide insurance market with reputable insurers of good standing by contractors in the relevant country.
|
| EMERGING AND DEVELOPED MARKET DIFFERENCES Wider reference criteria may be required in certain emerging markets in respect of limb (b) of the definition above - for example, if there is not a sufficient pool of contractors in the relevant country to draw a meaningful market practice comparison. |