Using Insurance to manage the risk of investment screening

Offering food for thought in the current situation, the Business Bites series continues to ask what ingredients can create the best recipes to help navigate the challenges and opportunities posed by the new dynamic.

Listen to Dentons partners Séverine Hotellier and Nora Wouters, as well as Jens Hillebrand Pohl, Course Director at the Academy of European Law (Europäische Rechtsakademie, ERA) in Trier, Germany, discuss the use of insurance in managing the risk of investment screening. Investment screening risk insurance will be familiar to investors active in the US (CFIUS insurance), but it remains a relatively new topic in the European market. However, since the introduction last year of an EU framework for FDI screening, investors are beginning to look at ways to mitigate the risk that FDI transactions may be blocked or delayed as a result of investment screening. We take a closer look at the phenomenon of using insurance to mitigate this risk.