Political risk and violence remain a top 10 global concern for businesses for the third consecutive year with civil unrest, terrorism and state-sponsored sabotage posing significant threats to operations and assets according to a new report.
The new 26-page Allianz Commercial report Political violence and civil unrest trends 2025 published in April this year has revealed that 51% of companies fear civil unrest as protests spike worldwide. Terrorism, state-sponsored sabotage and environmental activism also pose growing threats to operations.
India, Pakistan, South Korea, Iran, Indonesia, Japan and Bangladesh were the Asian countries that were in the top 20 countries by protest and riot frequency.
The Asia Pacific region recorded the highest number of protests and riots in 2024, driven by dissatisfaction with government policies, perceived authoritarianism, economic challenges and social inequality.
Specific events included communal riots in India, student-led demonstrations in Bangladesh and Indonesia, anti-war protests, and martial law-related unrest in South Korea.
India with 18,626 protests in 2024 leads the list of the top 20 countries for protest activity. Allianz documented more than 80,000 incidents and apart from India, the US (8,549) and France (5,517) experienced the highest frequency of protests.
In terms of the countries with the greatest increase in the frequency of protests between 2023 and 2024, Allianz identified India (+21.2%), Germany (+35.9%), Kenya (+57.7%), Poland (+102.1%) and Morocco (205.9%).
The report said the impact on businesses from protests and riots can be substantial, ranging from direct property damage to operational disruptions.
Over 40% of the companies surveyed expressed concern over disruptions in supply chains. In addition, an increase in terrorist attacks from religious and political extremists was also noticed.
Allianz Commercial head of political violence and hostile environment solutions Srdjan Todorovic said, “Political violence activity can impact businesses in many ways. Besides endangering the safety of employees and customers, those in the immediate vicinity of unrest can also suffer business interruption losses and material damage to property or assets.”
Insurers have also seen the strikes, riots and civil commotion (SRCC) peril increase in frequency and severity in recent years. Events including riots in Chile and South Africa have contributed to insured losses well in excess of $10bn over the past decade, surpassing other levels of political violence and terrorism insurance claims.
In certain hotspot territories losses can rival or surpass those from natural catastrophes, while in others, although the direct impact may be minor, events can still trigger long- lasting changes in the societies they affect.
Mr Todorovic said, “Companies also need to review their insurance. Property policies may cover political violence claims in some cases, but specialist protection is also available. Businesses with multi-country exposures are showing a greater interest in political violence coverage but there is also greater engagement from the SME and mid-corp space about these risks, a true reflection of increasing concern in this segment.”