SINGAPORE- Media OutReach - 10 April 2019 - The investmentand infrastructure development opportunities generated by China'smultibillion-dollar Belt and Road Initiative are not without risk, according tonew research from Aon, the leading global professional services firm providinga broad range of risk, retirement and health solutions.

Stephen Taylor, Head of Credit Solutions, Asia, Aon

Aon's2019 Risk Maps, developedin partnership with Continuum Economics and The Risk Advisory Group, examinepolitical risk, terrorism and political violence around the world. This yearfindings show that businesses looking to take part in BRI, which aims to boostconnectivity and reduce trade costs between Asia and Europe, need to be awareof the risks associated with the project.

Stephen Taylor, Head of Credit Solutions,Asia, Aon said: As the BRI investmenttrend continues, the use of credit and political risks insurance will grow,either where the lender is covering non-payment of debt or where corporationsinsure their assets and equity investments against risks such as currencyinconvertibility and expropriation.

Key findings include:

• The Asia Development Bankestimates the infrastructure gap across 25 developing Asian economies amountsto USD 469 billion annually, meaning significant opportunities for development.
• Businesses in East Asia and thePacific currently take an average of 100 days to import/export, in starkcomparison to the 10-15 days taken by firms operating in G7 countries. The BRIcould help to drive down the time taken to do business.
• The regulatory andinstitutional framework of many countries within the proposed BRI exposesinvestors to potentially significant risks, including sovereign non-payment,supply chain disruption and political interference. 

The report also emphasises thatgovernment decisions have the potential to impact both regional trade anddevelopment. Businesses investing across borders should closely monitor thepolitical situation in the host countries in which they are transacting andconsider their insurance coverages in response to changing exposures and thepotential for volatility caused by politically motivated decisions.

A positive will be the ripple effectfrom the infrastructure investment, particularly in the emerging economies ofSoutheast Asia and Africa, as we expect to see a rise in the companiesinvesting across the supply chain, including manufacturing hubs beingestablished in free trade zones.  These companies will be turning tocredit solutions to secure risk, support finance and accelerate growth.

Notes to editors

Aon's Risk Maps, developed in collaboration with Continuum Economics and The Risk Advisory Group, aredesigned to help firms better understand and navigate evolving exposurescreated by political risk, terrorism and political violence. In today's complexgeopolitical and economic environment, the maps enable clients to identify andtrack the different sources and degrees of risk, assisting businesses inplanning and protecting assets, contracts and loans that could be adverselyaffected.

For moreinformation and to access the interactive maps and full report please visit ourdedicated Risk Maps site.

About Aon

Aonplc (NYSE:AON)is a leading global professional services firm providing a broad range of risk,retirement and health solutions. Our 50,000 colleagues in 120 countries empowerresults for clients by using proprietary data and analytics to deliver insightsthat reduce volatility and improve performance.

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