Incidences of global civil unrest increased by 3% in the year to 31st March 2023 – rising to 30,376 from 29,535 in the previous year, according to data compiled by Binghampton University and Chaucer.
As double digit inflation and rising interest rates lead to falls in real incomes, public discontent is particularly apparent across Europe, where annual inflation hit a record high of 8.4% last year.
The public backlash on pension reform in France has contributed to the 55% jump in the number of social unrest incidences there – up to 249 incidences of social unrest in Q1 2023 from 161 in Q1 2022. Hundreds of thousands of protesters have taken to the streets of Paris, whilst coordinated strikes have led to widespread disruption.
Concerns over how a rise in public anger at the increased cost of living may translate into further protests continues to fuel demand from corporates for cover for damage from strikes, riots and civil commotion incidents.
Craig Curtiss, senior class underwriter, political violence and crisis management at Chaucer says some insurers have removed coverage for damage from strikes, riots and civil commotion from standard insurance policy terms, leaving a gap.
Even within the standalone SRCC market some insurers are limiting the risks they cover, particularly in traditionally volatile parts of the world, he added.
“The escalating cost of living has unequivocally led to an increase in civil unrest. Over the last 12 months we’ve seen a increased trend of unrest in Europe and in particular France where mass protests have occurred," Curtiss explained. "Even countries with traditionally stable economies and less of a history for public protests have been impacted. Specialist re/insurers have stepped in to meet the demand from corporates to cover the shortfall created by general property insurance policies excluding this coverage. Demand from international brands in retail and leisure and from financial services businesses is particularly strong."
More on civil unrest:
Jimena Blanco's Climate change will exacerbate civil unrest
Deborah Ritchie's Prepare for rise in civil unrest
Chris Needham-Bennett's The Anatomy of Protest
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