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Daily Insurance Industry News
Sunday 19th of August 2018
April 19, 2011

Firms urged to review political risk cover

by Gill Montia

Story link: Firms urged to review political risk cover

“Companies operating in politically volatile regions of the world may soon find they are unable to retain sufficient insurance coverage to protect their assets and staff.”

The warning comes in a new report from Willis, which points out that insurers offering protection against political risk and terrorism are re-evaluating their terms and prices, meaning that firms need to get the right cove in place in case insurers “close the door”.

Companies also run the risk of discovering that their existing policies do not cover the type of political unrest seen in the Middle East, North Africa and Asia, the broker adds.

The report’s lead author and managing director, Willis Global Solutions (International), Bob Peilow, says: “What shocks a lot of people about the latest wave of political unrest is the unpredictability around where it will happen next, and the fact that today’s stable or ‘investor friendly’ regime can very easily become tomorrow’s hot spot.”

According to Mr Peilow: “This is why it is so important that companies have the right coverage in place should the unthinkable happen.”

Comparing the three main types of insurance against political unrest, the report concludes that full Political Violence insurance provides the most comprehensive coverage for the type of unrest currently sweeping through.

Much broader than traditional terrorism insurance, political violence insurance protects against financial loss as the consequence of insurrection, civil unrest, politically motivated sabotage, strikes, riots and civil commotion, armed uprising, coup d’état, and civil war.

 

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