High inflation and wealth inequality are fueling unease around the globe. (Credit: Ryland West/ALM)
Companies around the world are worried about rising civil unrest and the damage it could do to their business, according to a new report from Allianz Commercial.
Most companies (51%) say civil unrest and riots are their top worry when it comes to political risk and violence exposures. Other concerns include war (48%), supply chain impacts (41%), acts of terrorism and sabotage (40%) and protectionism or government intervention/change (31%).
Since 2017, there have been 800 significant anti-government protests in 150 countries — more than 160 of those events took place in 2024 alone.
Things could get worse this year. Last year, many countries had big elections, resulting in big shifts in power.
High inflation, wealth inequality, food and fuel prices, climate anxiety and concerns about civil liberties have been contributing to unease around the globe. Economic hardships that result from tariff-driven trade wars could further add fuel to the fire, the report says.
“Politics is increasingly perceived as being dominated by populism, blame and division, geopolitics by nationalism and a changing world order, and economics by mismanagement, corruption, and continually rising disparity between the ‘rich’ and the rest,” says Srdjan Todorovic, head of political violence and hostile environment solutions at Allianz Commercial, in a statement.
Events such as riots in Chile and South Africa and Black Lives Matter-related unrest in the United States resulted in insured losses of more than $10 billion over the last decade. That’s higher than all other political violence and terrorism insurance claims.
“Political violence activity can impact businesses in many ways,” Todorovic said. “In addition to endangering the safety of employees and customers, those in the immediate vicinity of unrest can suffer business interruption losses and material damage to property or assets.”
Worried business owners should review their insurance coverage and ensure they have a business continuity plan in place in case an incident occurs, the report says.
“Property policies may cover political violence claims in some cases, but specialist protection is also available,” Todorovic said. “Businesses with multi-country exposures are showing a greater interest in political violence coverage, but there is also greater engagement from the small and medium-sized enterprise and mid-corp space about these risks, a true reflection of increasing concern in this segment.”
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