Appetite to write political violence risks decreasing: Allianz

Reinsurance capacity and general appetite to write political violence risks is reducing as insured losses from civil unrest grow, according to a report published Wednesday by Allianz Commercial, a unit of Allianz SE.

Insurers paid out around $13 billion from just seven civil unrest incidents globally in recent years and unrest is spreading more quickly and widely, in part due to social media, the report said.

Demand for political violence coverage continues to increase following recent protests and civil unrest losses in Chile, South Africa, France and the U.S.

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 U.S., India and Indonesia.

A narrow result in the U.S. in November could inflame existing tensions, particularly in the battleground states, the report said.

Recent incidents of political violence in the U.S. include the storming of the Capitol on Jan. 6, 2021, and the placement of pipe bombs at the Democratic and Republican headquarters the night before the Capitol attack.

“Insurers continue to search for solutions to limit and better monitor their exposures as they note the deteriorating global situation,” Srdjan Todorovic, head of political violence and hostile environment solutions, Allianz Commercial, said in the report.

Multinational businesses are showing greater interest in political violence coverage than smaller businesses with simpler production and supply chains, he said.