15.09.2026
Texel Insights: Managing Counterparty Limits in CPRI: A Strategic Perspective
Our second report in the Texel Insights series focuses on a growing and often underestimated constraint: the management of counterparty limits. As financial institutions scale their use of credit and political risk insurance, exposures to insurance counterparties grows structurally, driven by recurring transactions, renewals, and broader application across business lines. The implications of unmanaged counterparty limit pressure are both strategic and operational. However counterparty limit pressures are not a weakness of CPRI, rather they are a sign of maturity and successful product adoption.
This report explores what financials institutions can do, whether that is proactively diversifying insurer panels, optimising portfolio allocation, refining risk frameworks to distinguish contingent from direct exposure or exploring structures such as reinsurance or fronting arrangement, to be better positioned to continue growing their use of CPRI.