The report "World Investment and Political Risk 2013" looks at how political risk affects Foreign Direct Investment (FDI) and the role of political risk insurance in reducing these risks. Investors see political risk as a major obstacle in developing countries, but worry more about economic instability in the medium term. Political risk insurance is increasingly used to manage these risks, showing the industry's strength and ability to adapt. Breach of contract risk is also examined, helping investors and insurers in projects involving developing-country governments. The research supports collaboration between private and public sectors to facilitate important investments.