In September 1985, the World Bank supported the idea of a multilateral provider of political risk insurance and founded MIGA in April 1988. The agency started with a capital of one billion dollars among the original 29 Member States. Among these nations were Bahrain, Bangladesh, Barbados, Canada, Chile, Cyprus, Denmark, Ecuador, Egypt, Germany, Grenada, Indonesia, Jamaica, Japan, Jordan, Korea, Kuwait, Lesotho, Malawi, the Netherlands, Nigeria, Pakistan, Samoa, Saudi Arabia, Senegal, Sweden, Switzerland, the United Kingdom and the United States. MIGA offers insurance covering five types of non-commercial risks: currency irreversibility and transfer limits; government expropriation; war, terrorism and civil unrest; Offences and non-compliance with financial obligations. [15] [16] [17] MIGA covers investments such as equity, loans, shareholder loans and guarantees on shareholder loans. The Agency can also provide investments such as management contracts, asset securitization, bonds, leasing activities, franchise agreements and licensing agreements. [18] [19] The Agency generally provides insurance coverage of up to 15 years, with a five-year extension, depending on the nature and circumstances of a project. [20] In the event of an insurance-protected event, MIGA may exercise the investor`s rights to the host country through the subdition in order to recover the costs associated with the coverage of the debt. However, the Agency`s convention does not require member governments to treat foreign investment in a particular way. [21] As a multilateral institution, MIGA is also able to resolve potential disputes before they even become insurance rights. [22] In 1997, MIGA awarded the foundation contract as part of its cooperation programme for an energy project in Indonesia.

In collaboration with the European Union Investment Trust Fund for Bosnia and Herzegovina, the Agency has established a $12 million investment guarantee fund (US$17 million in 2012). The Agency also created the $20 million trust fund for investment guarantees in the West Bank and Gaza ($29 million in 2012).