Civil Unrest and Political Instability: A Rising Business Concern
A recent report by Allianz Commercial highlights the growing concern of civil unrest and protest activities for companies and insurers worldwide. The Allianz Risk Barometer 2025 identifies political risks and violence as a top 10 global risk for businesses over the past three years. Civil unrest is a primary concern for more than half of the businesses surveyed.
Since 2017, more than 800 significant anti-government protests have erupted across over 150 countries, excluding ongoing unrest in the Balkans and Türkiye. The year 2024 alone experienced over 160 events, with 18% of these protests lasting more than three months.
Following the ‘super election year’ of 2024, analysts predict that policy changes and economic challenges, particularly from tariff wars, will continue to spark protests and flashpoints globally. Additionally, the rise of terrorist attacks from both religious and political extremists, motivated by far-right and left ideologies, has become a significant concern for businesses in the upcoming year.
Navigating a Volatile Geopolitical Landscape
Allianz analysts advise companies to adapt to an unpredictable geopolitical environment to mitigate risks and avoid adverse surprises. Srdjan Todorovic, Head of Political Violence and Hostile Environment Solutions at Allianz Commercial, states: “Political violence remains a top 10 global business risk according to our customers. Politics is increasingly perceived as being dominated by populism, blame, and division, geopolitics by nationalism and a changing world order, and economics by mismanagement, corruption, and the ever-widening gap between the rich and the rest.”
Todorovic further explains: “Political violence can impact businesses in numerous ways. Besides endangering the safety of employees and customers, those near unrest sites may suffer business interruption losses and property damage.”
Global Hotspots and Insurance Challenges
The Allianz report indicates that civil unrest has emerged as the primary political violence concern for global businesses. The risk of civil unrest, strikes, riots, and civil commotion (SRCC) is particularly prominent in countries like Colombia, France, South Africa, the UK, and the US.
In 2024, the top 20 countries with frequent protest and riot activities recorded more than 80,000 incidents, with India, the US, France, Germany, Türkiye, and Spain identified as hotspots, according to Allianz Research.
Insurers echo this sentiment, noting the increase in frequency and severity of SRCC events. In some regions, these events have a minor impact, but in certain hotspots, losses can rival or even surpass those from natural catastrophes.
Todorovic adds: “All forms of civil unrest and protest activity persist as issues. Factors such as high inflation, wealth inequality, rising food and fuel prices, climate concerns, and perceived threats to civil liberties or democracy remain unresolved.”
Furthermore, the rise in religious and political terrorism is evident, including growing far-right support, far-left movements, and increased plots and attacks from Islamist groups and individuals.
Preparing for Political Violence Risks
Businesses must stay alert to the evolving nature of political violence risks, protecting their people and assets by implementing robust business continuity plans. Companies should also reassess their insurance coverage, as property policies may cover political violence claims in some cases, but specialized protection is available.
Todorovic concludes: “Businesses with exposure in multiple countries are increasingly interested in political violence coverage. Additionally, the SME and mid-corp segments are more engaged with these risks, reflecting a growing concern in this sector.”
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