After a turbulent 2010, the eurozone faces a new test—deciding its future. Brian Lawson, Mike Simms and Rafael Gomes consider several possible scenarios for the common currency and the associated risks for business.
After 11 years of operation, the euro faced unprecedented pressures during 2010 that challenged its existence. With Greece and Ireland having required rescue packages, and with Portugal trading at levels many view as unsustainable at the time of writing, there are fundamental questions over the euro’s future direction and composition.
For political risk insurers, a major change in the eurozone could impact both on claims and on currency risk management, under a range of scenarios. Claim volumes are largely manageable, demand for political risk insurance (PRI) is high and new entrants into the market have brought new capacity.
Where next for the euro?
Insurance, Reinsurance, Europe, Sovereign Debt, Financial crisis, Eurozone, Political risk, Exclusive Analysis
