PPRI expands the toolbox of Palestinian business owners by offering them locally tailored insurance coverage designed to mitigate risk due to political violence and trade disruption. During the pilot stage of this project, the Middle East Investment Initiative (MEII) and the Overseas Private Investment Corporation (OPIC) with whom MEII has a Memorandum of Understanding (MOU) in pursuit of this project, will together insure the National Insurance Company (NIC) based in Ramallah up to $1 million in political risk insurance for the West Bank and Gaza; NIC will also take part of the initial risk. Through this partnership, PPRI will lend NIC and the Palestinian insurance industry needed guidance in the way of technical training and support, monitoring, marketing, underwriting and research on the possible reduction of supply chain risk as well as the facilitation of the movement of goods.
PPRI was initiated by President William J. Clinton at the 2005 Clinton Global Initiative (CGI) annual meeting and later advanced at the CGI annual meeting in 2007. The Center for American Progress and AIG among others guided the steering committee for the PPRI and the effort has received ample support from President George W. Bush as well as other political and business leaders in the U.S., Europe, Israel and across the Arab world.
With continued fundraising efforts and increased partnership support from OPIC, PPRI is expected to grow into a $20 million fund; and if insured exporters grow by only 10% annually this project could facilitate over $400 million in exports from the Palestinian Territories resulting in mutually reinforcing trends of economic growth and job creation.