Appetite to write political violence risks is decreasing
Source: Middle East Insurance Review | May 2024
Reinsurance capacity and the general appetite to underwrite political violence risks is reducing as insured losses from civil unrest grow according to a new report by Allianz Commercial.
The report said insurers paid out around $13bn from just seven civil unrest incidents globally in recent years and unrest is spreading more quickly and widely, in part due to social media. Demand for political violence coverage also continues to increase following recent protests and civil unrest losses in Chile, South Africa, France and the US.
The report said security is a growing concern with almost half the world’s population in at least 70 countries going to the polls this year, including elections in the US, India and Indonesia.
A narrow result in the US in November this year could inflame existing tensions, particularly in the battleground states according to the report.
Recent incidents of political violence in the US include the storming of the Capitol in 2021 and the placement of pipe bombs at the Democratic and Republican headquarters the night before the Capitol attack. M