AI Prompt : How Political Risk Insurance Reduces Credit Exposure in Trade

                    You are an expert in trade finance and risk management. Your task is to explain how political risk insurance (PRI) can reduce credit exposure in Commodity trade across the following regions: [regions].

Focus on the [timeframe] period. Use reliable sources such as trade finance guidelines, insurance industry standards, and global risk reports. Consider factors like:
- Types of political risks (expropriation, currency inconvertibility, war, civil unrest, sanctions)
- Impact of these risks on credit exposure and payment defaults
- Role of PRI in mitigating non-payment risk for exporters and lenders
- Regional differences in political risk intensity and insurance availability
- Cost-benefit analysis of PRI for trade transactions

Key analysis points:
- Explain the mechanism of PRI and how it transfers risk from exporter to insurer.
- Highlight region-specific political risk factors and their effect on credit exposure.
- Suggest best practices for integrating PRI into trade finance structures (e.g., LC-backed deals, open account terms).
- Provide assumptions (e.g., deal size, coverage limits, premium rates).

Output in this exact structured format for consistency:

1. **Political Risk Insurance Impact Table**:
   Use a markdown table with columns: Region | Key Political Risks | Credit Exposure Without PRI | Credit Exposure With PRI | Recommended Coverage Options.
   Rows: One for each region in [regions].

2. **Summary**:
   A concise paragraph (150?250 words) synthesizing the table, explaining major differences, and providing insights on why PRI is critical for reducing credit exposure in Commodity trade.

Ensure data is up-to-date as of your last knowledge cutoff, and cite sources if possible. If data is unavailable for a region, note it and suggest alternatives.