Middle East - MENA: Macroeconomic and market developments seen as top risks - Allianz
Source: Middle East Insurance Review | Feb 2016
Concerns about both macroeconomic and market developments top the risk agenda in the Africa & Middle East region, which appear for the first time on the 2016 Allianz Risk Barometer.
Macroeconomic developments include austerity programmes, commodity price increases, and inflation/ deflation, while market developments include volatility, intensified competition, and market stagnation.
The region’s risk agenda differ significantly from those of the Americas, Asia Pacific and Europe, where business interruption (including supply chain disruption) remains the top risk year-on-year. By comparison, business interruption ranks as the fifth top risk in the Africa & Middle East region.
Political risks (war, terrorism, upheaval), ranked seventh in Africa & Middle East, are rated higher than in any other region. In addition, this region is the only one to rank power blackouts (10th place) in the top 10 risks.
The top 10 business risks cited in the Africa & Middle East region are: macroeconomic developments (44%); market developments (44%); changes in legislation and regulation (32%); natural catastrophes (32%); business interruption (30%); cyber incidents (30%); political risks (27%); fire and explosion (25%); theft, fraud and corruption (20%); and power blackouts (14%).
The fifth annual Allianz Risk Barometer study was conducted among global businesses, as well as risk consultants, underwriters, senior managers and claims experts within both AGCS and local Allianz entities during October and November 2015. Its focus is on the corporate insurance sector for both large and small to mid-sized industrial companies.