Developing Insurance Markets: The Insurance Sector’s Contribution to the Sustainable Development Goals

Insurance can play a significant role in helping countries achieve the UN SDGs in terms of economic growth, social inclusion, and environmental protection. This can be achieved through the risk transfer mechanisms of households, businesses, and the public sector.

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Insolvency Laws

When contemplating any form of financing of infrastructure project, the host country’s insolvency laws will need to be understood by all parties concerned. Any host country seeking to attract private sector investment will need to have transparent and efficient insolvency laws which are fair to the parties concerned and are consistent with an ever more standardized international standard.

Health and Safety Laws

Health and safety laws vary considerably from country to country, and there is a trend towards greater focus on safety in the workplace – particularly on construction sites.

Availability and Terms of Insurance

Infrastructure projects carry a number of risks and potential liabilities that are typically covered by insurance. The availability of insurance coverage and the terms of such coverage will differ from country to country and specific local advice should be sought on what is appropriate. In some countries, only local insurance is available, or there are restrictions on reinsurance.

Key Issues in Civil Law Systems That May Impact PPP Projects

In many civil law countries a separate administrative law governs PPP arrangements.It is important to seek local legal advice to check whether these rules apply in a particular civil system.  It is also important to note that in a civil law jurisdiction, unless the contract specifies that the parties have agreed to arbitration, the contract will be enforced by the administrative courts.

Contract Law – Limitations on Freedom of Contract

The legal environment of a host country is likely to contain a number of restrictions on the parties' ability to contract freely and may also imply a number of provisions into the agreement. Civil law jurisdictions have a number of doctrines that will be implied into the relationship between the parties. For more, go to Key Issues in Civil Law systems that impact PPP projects.