‘Super election year’ heightens political violence risks – Allianz Commercial

Financial impact of past civil unrest incidents reached around $13b.

In 2024, nearly half of the global population will vote, which entails security risks elevated due to the potential for civil unrest and the influence of social media on spreading disruptions, Allianz Commercial warned in their latest report “Managing the increasing threat of political violence and civil unrest: How to maintain business resilience in a volatile world”.

Noting that the critical elections in the US and EU could affect trade, foreign policy, and supply chains. 

"Businesses need to protect their people and property with forward planning, such as ensuring safe and robust business continuity planning is in place in the event of an incident, increasing security, and reducing and relocating inventory if likely to be impacted by an event," said Srdjan Todorovic, head of Political Violence and Hostile Environment Solutions at Allianz Commercial. 

"Using scenario planning and tracking risks in areas key to their operations can raise businesses' awareness of where political violence and civil unrest risks may be intensifying. Companies should also review whether their insurance policy covers the impact of risks such as strikes, riots, and civil commotion." Todorovic added.

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The financial impact of past civil unrest incidents reached around $13b. With increasing threats from terrorism and environmental activism, businesses face significant challenges and must enhance their continuity planning to manage risks effectively.

Key elections in the US and EU could shift political landscapes, influencing policies on the environment, immigration, and human rights. The polarisation from these shifts could incite unrest. 

Environmental activism is rising, with incidents up 120% between 2022 and 2023, including significant attacks like the arson at a Tesla plant in Germany. Terrorism fatalities also increased by 22% in 2023, with attacks motivated by various global and political tensions.

Demand for political violence insurance is growing among multinational companies, which need robust planning and risk management to protect against the potential for material damage, business interruption, and other indirect impacts from political violence and unrest.