Political Violence and Civil Unrest
Why are people feeling the pressure?
Political Violence and Civil Unrest in recent years is related to people feeling the need for change due to feelings of lost opportunities. These feelings are coming from economic downturn, discontent with mandates related to Covid lock downs, and supply chain issues.
Surprisingly (or maybe not so much) political unrest has made the top ten risk concerns according to the 2021 Allianz Risk Barometer.
What world events are contributing to this?
With recent economic struggles due to global supply chain interruptions, lock down mandates, and inflation outpacing salary growth has created feelings of loneliness, isolation, distrust of others, and hopelessness related to financial security. These feelings are giving rise to anti-authorities, nationalism [racism], erosion of democracy, and the growth of post factual information. It is directly creating a desire for violent revolution for change, and while the objectives might not be clear the need to act out is.
As inflation pricing out grows median salaries people are reacting to their inability to secure homes and financial prosperity and are acting against others perceived to be stealing those opportunities. The resulting in growth of violent hate crimes against people and organizations due to perceived differences. As the divide grows between salary and inflation the potential for violence and hateful acts will also grow.
How are people acting out?
In the last few years, we saw the Yellow Vest Protest in France ($90,000,000 in loss); the Storm the Capital Insurrection in the USA ($30,000,000 in loss); and currently experiencing the Tuckers Convoy in Ottawa, Canada. While we do not have a loss number a week into the occupation, we do have reports that show one mall lost $19,700,000 in revenue. This number is likely to double by the end of the occupation.
The Freedom Convoy crises experienced in Canada recently affected traffic, local businesses, and entangled the community. The perceived inability of the police is a critical factor in creating discord within the community long after the protest is over. This is concerning because these types of protests are likely to increase and may come occur in a town near you. Protests, occupations, and riots are a bigger threat of terrorism than international rivalry.
What is happening to businesses?
Businesses are suffering financial losses both directly and indirectly due to Civil unrest. Interruption of business can happen when people avoid locations being occupied by protestors, riots can create an atmosphere where vandalism and destruction can directly damage a location, services, and products.
How can Insurance help Business?
Terrorism and Malicious Acts Insurance has grown over the last decade. The coverage is meant to cover attacks by individuals or groups of individuals actively engaged in killing, or attempting to injure, or incapacitate people using firearms or vehicles at or near the business’ premise.
Coverage extends property and business interruption coverage beyond loss due to physical damage to also include loss of attraction due to active shooter or vehicular attack. It also includes Temporary Security Measures.
If you would like to know more about Terrorism and Malicious Acts coverage, please contact the Risk Management and Commercial Specialist as follows:
Jenny Holly Hansen
604.566.6660 ext. 107
[email protected]
6481 Oak Street, Vancouver, BC V6M 2W7
Be sure to visit our LinkedIn, Instagram and Facebook for updates and tips!