With thousands of service jobs moving to countries like India, a new multi-million insurance market is emerging as companies seek to protect their overseas outsourcing investments from unforeseen troubles.
Companies are becoming increasingly nervous that risks such as terrorism, government instability and civil unrest could sabotage their outsourcing facilities abroad.
Outsourcing and India: Complete Coverage
Aon, an insurance broker, this month sold the first such insurance policy to an undisclosed European airline that is setting up call centres in India.
Charles Keville, director of counter-terrorism and political risk at Aon, arranged the unique insurance with the Lloyd's of London insurers Kiln and Liberty syndicates.
Keville said that he had already begun lining up similar policies for financial houses and software companies and expected a strong demand.
The new insurance would cover relocation costs in the event of war, terrorism, trade embargo, strike, supplier insolvency and expropriation by the host government, he said.
"People have been on the phone within minutes of finding out that the insurance is available," he added.
