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Aon: Elevated political risk levels to continue into 2010

01 February 2010

Political and financial instability remain a feature of the business landscape as a result of the recession, according to Aon Risk Services.

Miles Johnstone, director of Aon’s Political Risk team, explained: "Rising risk levels in 2009 have led to a significant volume of credit and political risk claims in international insurance markets which is driving many of the 18 downgrades in this year's map. For instance non-payment of sovereign and sub-sovereign debt obligations is a major issue for underwriters insuring risks in Ghana, and underwriters continue to experience a multitude of claims stemming from payment defaults by private sector banks in Ukraine."

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