Rising Concerns: Civil Unrest and Political Violence
Businesses of all sizes are increasingly concerned about civil unrest and political violence, according to a recent report by Allianz Commercial. The report, titled “Political violence and civil unrest trends 2025,” reveals that strikes, riots, and civil commotion (SRCC) are the top political risk and violence exposure feared by companies, with over 50% ranking it as their main worry.
The Allianz Risk Barometer 2025, an annual survey of global businesses, supports these findings, showing that political risks and violence have been among the top 10 global risks for four of the past five years. The unpredictability of SRCC incidents makes it challenging for businesses to prepare and mitigate losses. “Unlike other perils, such as flood or windstorm, it is difficult to prepare in the same way to mitigate losses and build contingency and business continuity plans,” the report states.
Political violence can impact businesses in various ways, endangering employees and customers, causing business interruption losses, and damaging property or assets. The report notes that over 800 significant anti-government protests occurred in more than 150 countries, excluding ongoing unrest in the Balkans and Turkey. In 2024 alone, there were over 160 significant events, with 18% lasting more than three months.
The financial impact is significant, with insured losses from SRCC events exceeding $10 billion over the past decade. Insurers are concerned about the increasing frequency and severity of these events, which can rival or surpass losses from natural catastrophes in certain regions.
Risk Management and Mitigation Strategies
To mitigate these risks, businesses can take several steps:
- Stay informed about planned protests and government policies
- Implement or update business continuity plans (BCPs) as needed
- Increase security measures, particularly for high-risk businesses like retail and those with high-value assets
- Consider temporary relocation of inventory or assets
- Diversify supply chains geographically and by company
- Review insurance policies for SRCC coverage
Experts emphasize the importance of factoring political violence perils into business interruption and continuity planning. “It would be negligent for large companies to not consider political violence and terrorism exposures in the same vein as they are considering the impact that natural catastrophes might have on their operations,” warns Srdjan Todorovic, head of Political Violence and Hostile Environment Solutions at Allianz Commercial.
As civil unrest and political violence continue to pose significant threats, businesses must remain vigilant and proactive in managing these risks to ensure continuity and minimize losses.
