Our Process

MIGA’s underwriting process begins when a client submits a Preliminary Application. The application is free, confidential, short, and it can be done online. As soon as we receive the application, we will assign an underwriter to review it to determine whether the project meets our eligibility criteria. MIGA will then contact the client to discuss the project.

At this point the underwriter discusses preliminary pricing with the client, the potential size of the guarantee, and the MIGA covers that are most appropriate for the investment. We also work with the client to identify environmental and social impact assessments that must be undertaken.

Definitive Application and Client Documentation

The next step is for the client to submit a Definitive Application (the form will be provided by MIGA’s underwriting team). After receiving the completed Definitive Application, MIGA begins a thorough review of the project. To ensure a quick underwriting process, the project sponsors must submit supporting documentation, which we review to ensure that the project meets MIGA’s policies and guidelines. The supporting documentation we require to begin the formal underwriting process typically may include:

• Feasibility study or a business plan supporting the economic viability and financial soundness of the project
• Financial forecast/ model
• All loan documentation, including shareholder and non-shareholder loans (drafts acceptable during underwriting) and all loan-related documents
• All loan guarantees (including back-stop guarantees from parent companies)
• Financial statements and incorporation documents/by-laws from the investor and the project enterprise in the host country
• Environmental permits/environmental impact assessment if applicable
• Land purchase/lease agreements
• All other applicable project licenses/ permits/ agreements/contracts

Underwriting Fees

Definitive Application Fee: $5,000 for cover of less than $25 million and $10,000 for larger amounts. The application fee is applied toward the initial premium or, if MIGA rejects the project for any reason, the fee is refunded. 

Processing Fee: Additional fees may be required for complex projects. For example, fees may be required to cover the cost of site visits for environmental and social due diligence. 

Syndication Fee: If applicable, a fee will be applied when MIGA arranges a project’s total insurance requirements through reinsurance.

Review, Disclosure, and Due Diligence by MIGA 

Before we undertake extensive underwriting , MIGA’s management conducts a preliminary assessment of the project’s development impact, risk profile, and compliance with our legal and policy requirements. This early review helps give prompt feedback to clients on the project and the requirements for MIGA coverage. Once a project is authorized to proceed, our underwriting team completes its analysis of the project’s risks, its economic and financial viability, its environmental and social impact, and in general, its contribution to development. 

During this period we will also seek the host country’s approval to issue the insurance. This should provide some comfort to clients because the country has supported MIGA’s participation in the project. Once our management approves a project, we submit the project to our Board of Directors, comprising government representatives from our member countries. In accordance with our disclosure policy, a brief summary of the project and related environmental and social impact documents must be publicly disclosed prior to presentation to the Board of Directors. With MIGA’s Board approval and host country approval, the guarantee contracts are ready to be signed. 

The duration of the underwriting process depends on the complexity of the project. Complex projects requiring extensive environmental and social due diligence will take longer, but most projects can be underwritten in four to six months or less. Projects under the Small Investment Program can be processed in one to two months if all of the required documentation has been provided. 

Investors are encouraged to contact MIGA to discuss the type, amount, and duration of coverage that fits their needs. The business inquiries line is available by phone at +1.202.458.2538 or e-mail at migainquiry@worldbank.org.

Eligibility

MIGA insures cross-border investments made by investors in a MIGA member country into a developing member country. In certain cases, the agency may also insure an investment made by a national of the host country, provided the funds originate from outside that country.

Corporations and financial institutions are eligible for coverage if they are either incorporated in, and have their principal place of business in, a member country or if they are majority-owned by nationals of member countries. A state-owned company is eligible if it operates on a commercial basis. An investment made by a non-profit organization may be eligible if it is carried out on a commercial basis.

MIGA insures new and existing investments. For an existing investment to be considered eligible, the project must meet certain criteria. For example, MIGA may insure existing investments where an eligible investor is seeking to insure a pool of existing and new investments, or where the investor demonstrates both the development benefits of, and a long-term commitment to, the existing project. Acquisitions, including the privatization of state-owned enterprises, may also be eligible. Investors seeking clarification on eligibility are encouraged to contact us.

The types of foreign investments that can be covered include equity, shareholder loans, shareholder loan guarantees, and non-shareholder loans. All loans and loan guarantees, including those issued by shareholders of the project, must have a minimum maturity of more than one year provided that MIGA determines the project represents a long-term commitment by the investors. Other forms of investment, such as technical assistance and management contracts, asset securitizations, capital market bond issues, leasing, services, and franchising and licensing agreements, may also be eligible for coverage.

In keeping with MIGA's objective of promoting economic growth and development, investment projects must be financially and economically viable and meet MIGA’s social and environ​mental performance standards.

Investors are encouraged to contact MIGA to discuss the type, amount, and duration of coverage that fits their needs. The business inquiries line is available by phone at +1.202.458.2538 or e-mail at migainquiry@worldbank.org.

Exclusion List

The MIGA Exclusion List defines the types of projects that MIGA does not guarantee.

MIGA does not underwrite the following projects:

• Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances, PCB, wildlife or products regulated under CITES.

• Production or trade in weapons and munitions.

• Production or trade in alcoholic beverages (excluding beer and wine).

• Production or trade in tobacco.

• Gambling, casinos and equivalent enterprises.

• Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where MIGA considers the radioactive source to be trivial and/or adequately shielded.

• Production or trade in unbonded asbestos fibers. This does not apply to purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20 percent.

• Drift net fishing in the marine environment using nets in excess of 2.5 km. in length.

A reasonableness test will be applied when the activities of the project company would have a significant development impact but circumstances of the country require adjustment to the Exclusion List.

All financial intermediaries (FIs), except those engaged in activities specified below*, must apply the following exclusions, in addition to MIGA’s Exclusion List:

• Production or activities involving harmful or exploitative forms of forced labor/harmful child labor.

• Commercial logging operations for use in primary tropical moist forest.

• Production or trade in wood or other forestry products other than from sustainably managed forests.

*When investing in microfinance activities, FIs will apply the following items in addition to the MIGA Exclusion List:

• Production or activities involving harmful or exploitative forms of forced labor/harmful child labor.

• Production, trade, storage, or transport of significant volumes of hazardous chemicals, or commercial scale usage of hazardous chemicals. Hazardous chemicals include gasoline, kerosene, and other petroleum products.

• Production or activities that impinge on the lands owned, or claimed under adjudication, by Indigenous Peoples, without full documented consent of such peoples.

*Trade finance projects, given the nature of the transactions, FIs will apply the following items in addition to the MIGA Exclusion List:

Production or activities involving harmful or exploitative forms of forced labor/harmful child labor.