The Investment Insurance Program Managed by the Overseas Private Investment Corporation
ID-77-49: Published: Jul 26, 1977. Publicly Released: Jul 26, 1977.
- Full Report:
The success of private participation in the Overseas Private Investment Corporation's (OPIC) insurance operations has been superficial. It has resulted principally from participation by foreign insurance companies because U.S. companies have been reluctant to participate in political risk insurance.
Several alternatives are available to Congress in considering the future of the OPIC political risk insurance program. First, private participation could continue. This would require amending the Overseas Private Investment Corporation Amendments Act of 1974. Second, private participation could be modified. Most of the insurance companies want the Government to continue as a direct insurer of political risk because the private sector lacks the capacity to absorb the entire program. Third, private participation could be abandoned and the 1974 legislation repealed. OPIC would continue as the major insurer of political risk, but it would be necessary to redefine and clarify its purpose, define its role in U.S. foreign policy and foreign assistance, and modify its underwriting policies and procedures. Fourth, OPIC could be dissolved. Existing contracts would be assigned to another agency for liquidation.