It is difficult to talk about business today without talking about political risk and credit risk in the success of an organization. Domestic risks, foreign risks, and security challenges are just some of the obstacles that organizations must navigate across the global markets.
For Lydia Knoll, Underwriter II, Political Risk and Credit division, her job is incredibly diverse, exciting, and challenging, which she believes makes it a unique career path for people who are interested in finance, political science, and international relations. Everything from renewable energy financing to debt-for-nature swaps are just part of the job she and her team do. She also thinks it is a perfect fit for Gen Z talent.
FFF: What attracted you to this particular work?
Lydia: Similar to everybody in insurance, it was somewhat accidental! I graduated with an International Business degree and was seeking a career that had an international component – in business or in international development. In college, I had interned with a couple non-profits before deciding to shift my focus to private-sector business. Someone suggested that an insurance company may be a good place to start looking – it mixed the international footprint and the real-world impact I was looking for. Finding the Credit and Political Risk Insurance (CPRI) world was happenstance, but it’s been a really good fit. The job draws in people who have diverse career backgrounds. The industry is full of professionals who come from government jobs, public agency roles, commercial banks, and many have international backgrounds or work experience.
Is it a field that attracts talent?
No, but it should be. It’s one of those niche industries that I would have never known to look for, but it’s an attractive place to build a career. Most people have never heard of political risk and credit insurance, and insurance has an (unfounded!) reputation of being boring. I think if more people knew about the global scope of the job and diversity of deals we handle on a day-to-day, they would see CPRI as an exciting, rewarding career full of diverse cultures and disparate skills coming together to form cohesive teams and a common focus.
Can you talk about some of the projects you and your team handle?
It hugely varies – we support both the private and public sector.
In the public sector, we work on many global public works projects, such as a railway project in Kazakhstan, electrification of a public bus system in Brazil or a port expansion project in Peru. We assess risks of lending and investing into these various countries to determine if there are political risk events that could impact those investments. We have worked on financing for vaccines in lower income countries, roads and infrastructure, manufacturing facilities, renewable energy, data center financing, and financing directly to governments. We also have been very supportive of debt-for-nature financings.
... if more people knew about the global scope of the job and diversity of deals we handle on a day-to-day, they would see CPRI as an exciting, rewarding career full of diverse cultures and disparate skills coming together to form cohesive teams and a common focus.
The debt-for-nature transactions involve retiring existing, high-cost sovereign debt and raising new financing at a lower interest rate or cost where the savings are used for strategic developmental purposes of said country/government. Historically, the savings have been used for conservation efforts, such as expanding marine protected areas, but the concept could be recycled for other purposes (health, education, infrastructure, etc). Insurers, such as us, help crowd in investors and financial institutions who can then lend to places like The Bahamas, where the Government of Bahamas used the savings for marine conservation projects.
In the private sector, we largely work with global commercial banks that are lending money for the development of industrial, infrastructure and power projects, such as renewable energy. In this line of work, we simultaneously dig into the “micro” view of a single, utility-scale solar project and the macro view of the renewable energy sector. We also work with large, multinational corporates by providing insurance to protect against financial losses in their investments abroad caused by adverse and arbitrary actions of foreign governments.
There is always a pipeline of transactions to be reviewed, which is pretty engaging because there is always something different to focus on. By nature, the organizations we support, our customers, are looking all over the world for opportunities. We must follow them where they go. In this job, every day you’re being commercial, you’re being analytical. You are looking at a diverse pool of risk, which is really cool, and you will never be bored.
Like I said, the job is quite diverse!
What are some of the challenges you face?
Right now, one of our biggest challenges is the availability of talent, especially young talent. The CPRI industry is not big enough where you would have a huge talent pool to draw from, and similarly to the insurance industry at large, retirement is on the horizon for a large portion of the workforce. So, there are a lot of opportunities for those who can make their way in.
Typically, we look to other industries to recruit, such as government agencies, and we teach them private insurance. Or we pull from another credit and political risk insurance shop, and we train them on our risk appetite. Or we pull from the banking industry and teach them about the diversity of our business focus. There is a need to be a bit of a jack-of-all-trades, but many underwriters have a focus based on their professional background. We have people migrate from certain industries, and they become the subject matter expert for an asset class or region.
There's always a credit element. We also look at people who have banking backgrounds or credit analysis backgrounds, with knowledge in financial statement analysis, accounting, or some other related financial skill set.
What makes AXA XL a great place for professionals interested in this field?
AXA XL offers a truly global environment where your work can directly influence international development, sustainability, and economic stability. With a commitment to innovation, continuous learning, and a focus on impactful projects, AXA XL provides a platform for career growth and meaningful work. The company values diversity and inclusion, encouraging employees to bring their unique perspectives to complex challenges.
How does AXA XL support the development of young talent interested in political risk and credit insurance?
AXA XL invests in training programs, mentorship, and cross-functional opportunities to help employees gain expertise across regions and asset classes. The company promotes a culture of learning and collaboration, empowering young professionals to develop into industry specialists and leaders. Working here means being part of a company that’s shaping the future of global risk management.
