Political violence to heighten, civil unrest to increase
Source: Asia Insurance Review | Apr 2023
Companies may face ‘heightened’ and growing risk of political violence and civil protests driving losses through damage to buildings or business disruption according to a new report by Allianz Global Corporate & Specialty (AGCS).
The report, ‘Strikes, riots and civil commotion – a test of business resilience’ published in February 2023 says the threat is being ‘fuelled’ by multiple factors that are expected to combine to increase strikes, riots and civil commotions (SRCC) events around the world.
Political risks and violence was deemed a top 10 risk by respondents moving up to 10 position from 13 in the annual survey of risk management experts around the world.
The report says there is no shortage of factors driving the increase in SRCC events, with half of global protests last year triggered by economic issues.
It says the ongoing cost-of-living crisis is likely to spark more protests. Distrust of governments and institutions is often driven by economic grievances, which are currently playing out with strikes over pay in Europe.
AGCS experts have identified the cost-of-living crisis, distrust of governments and institutions, increasing polarisation, a rise in activism and climate and environmental concerns as five consistent factors expected to power ongoing incidences of SRCC around the world. A