Businesses across the globe are grappling with heightened concerns regarding civil unrest and political violence, according to a recent report by Allianz Commercial. Entitled “Political violence and civil unrest trends 2025,” the report reveals that over 50% of businesses identify strikes, riots, and civil commotion (SRCC) as their foremost worry in relation to political risk exposure.

The insights in the report stem largely from the Allianz Risk Barometer 2025, which surveys global businesses annually. Notably, political risks and violence have consistently ranked among the top ten global risks for four of the last five years—specifically in 2021, 2023, 2024, and 2025.

One of the significant challenges for businesses is the unpredictable nature of civil unrest; incidents can vary in size, location, and duration, complicating preparation for potential losses. Unlike natural disasters, such as floods or windstorms, the report emphasises, businesses find it challenging to develop effective contingency and business continuity plans for unpredictable political violence.

The ramifications of civil unrest can be severe, threatening the safety of employees and customers alike. Businesses situated near unrest can experience not only direct losses from property damage but also indirect losses through diminished customer attraction or restricted access to their premises.

In its analysis, Allianz highlighted that the previous year alone, more than 800 significant anti-government protests occurred across over 150 countries, with 160 significant events recorded in 2024. Particularly noteworthy is that 18% of these protests extended beyond three months.

The report identified that regions such as the Balkans and Turkey have been points of ongoing social unrest, while citing the United States, India, France, Germany, Turkey, and Spain as key hotspots for protest activity. In 2024, these top 20 countries alone saw over 80,000 incidents of protest or riot. The report suggested that social media’s role in the rapid dissemination of information has expedited the spread of unrest, leading to substantial economic and insured losses.

Allianz’s report also scrutinised rising insurance claims, stating that social upheavals such as the protests in Chile and South Africa, alongside the Black Lives Matter movement in the U.S., have resulted in insured losses exceeding US$10 billion over the past decade. In certain high-risk areas, the losses from political violence can approach or exceed those caused by natural disasters, impacting societal structures and norms over the long term.

Turning to the threats posed by extremism, the report highlighted the dangers of religious and political terrorism, noting a marked increase in incidents motivated by both far-right and far-left ideologies. Notably, in 2024, more than 100 reported incidents of right-wing extremism occurred, primarily in the United States and Germany. The prevalence of such incidents suggests that far-right terrorism is increasingly seen as a prominent domestic security challenge.

In light of these concerns, Allianz has called attention to the importance of risk management and insurance. Most property insurance classes incorporate some level of SRCC coverage, and growing interest in stand-alone political violence coverage has been noted, particularly among medium-sized enterprises. Tim McGain, a regional head of Property at Allianz Commercial, remarked that this trend illustrates the increasing vigilance businesses maintain regarding political risks.

Additionally, Srdjan Todorovic, head of Political Violence and Hostile Environment Solutions at Allianz, emphasised that the potential for business interruption from various factors—including political violence, terrorism, and natural catastrophes—requires careful consideration. “It would therefore 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,” he noted.

To assist businesses in mitigating risks associated with political violence, the report presented several recommendations. Companies are advised to stay informed on planned protests and government policies and to establish or revise existing business continuity plans accordingly. Businesses with high-value assets, especially those in conflict-prone areas, should increase their security measures and consider temporary relocation of inventory.

Moreover, diversifying supply chains and reviewing insurance policies to ensure adequate political violence coverage were both highlighted as proactive steps businesses could take to protect their assets and ensure continuity amidst unrest.

This report from Allianz Commercial clearly illustrates that the landscape of political and civil unrest poses significant challenges to businesses globally, underscoring the need for comprehensive risk assessment and strategic planning in an ever-evolving risk environment.

Source: Noah Wire Services