According to Allianz, strikes, riots and civil commotion around the world are expected to rise, but specialist insurance can help protect companies.
According to a new report from insurer Allianz Global Corporate & Specialty (AGCS), anger over growing social inequality and the cost-of-living, foundering faith in governments and institutions and increasingly polarised politics, together with a rise in activism and environmental concerns, are the main factors expected to fuel ongoing incidences of strikes, riots and civil commotion (SRCC) around the world.
Allianz said the heightened SRCC risk environment means businesses need to remain vigilant about the different threats such activity can pose.
In addition to buildings or assets suffering costly material damage, operations can be severely disrupted, resulting in significant loss of income.
The report revealed that civil unrest risks rose in over 50% of countries between Q2 and Q3 2022 alone, according to the Verisk Maplecroft Civil Unrest Index – out of 198 countries, 101 saw an increase in risk.
Moreover, since 2017, more than 400 significant anti-government protests have erupted worldwide. It is unsurprising then that ‘political risks and violence’ ranks as a top 10 peril in the Allianz Risk Barometer in 2023.
While the Ukraine war is a major factor in this ranking, the results also show that the impact of SRCC activity ranks as a political violence risk of top concern with a combined score of almost 70%.
Allianz Risk Consulting has developed a list of technical recommendations for companies, such as implementing, and then regularly testing and updating, a business continuity plan. Specialist insurance can help protect companies against damages resulting from political violence, as well as any interruption to the business. Policies can cover civil war, SRCC, terrorism and war.
Earlier this year, Allianz Partners partnered with Bridgestone to co-create new offers and services around each partner’s key areas of expertise: tyres and insurance.
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