Beazley & Business — Political Violence an Increasing Worry

Beazley’s 2024 Geopolitical Risk Snapshot report is out. The company sent surveys to 3,500 business leaders all over the world. Among them are those buying business insurance.

Beazley wants to know what worries business.

Political risk topped the list. In the United States, 32% of those surveyed say political risk is their biggest concern and 65% think this year’s election will have an impact on their international trade ability.

In North America, war and terrorism was a big concern for 25% of those surveyed.

One of the reasons for the political risk concern is that businesses in the U.S. have not forgotten the turmoil following 2020’s election, the January 2021 Capitol Hill riots and the Black Lives Matter (BLM) demonstrations and riots following the murders of George Floyd and Breonna Taylor.

Beazley’s statistics are interesting and alarming.

The company looked at the Armed Conflict Location and Event Data Project *ACLED) data on those issues. That information found there were over 11,000 BLM demonstrations in almost 3,000 locations. Of the events, ACLED found 94% to be peaceful and 6% ended up being violent with damage to property and the interruption of business.

Beazley’s Lucy Straker is the company’s political violence focus group leader. She — and the report — cite information from the Texas Politics Project that found many voters in the U.S. are expecting violence after this year’s election.

That could cause business interruption and big problems for insurers.

“History serves as a useful guide and can help our clients to identify whether they may fall victim to political violence this year. Previously, we have seen that businesses located close to government assets have been affected by rioting and political violence,” Straker said. “While they are not the target of protestors’ anger, they are often dragged in through collateral damage. For these businesses, having the right insurance is crucial to survival in the current geopolitical climate.”

Here’s more:

  • 29% predict damage from political violence will be high in 2025
  • 25% say they are not prepared for that risk

Source link: Digital Insurance — https://bit.ly/3wehVfK

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