Amid geopolitical turmoil and an unprecedented election year, insurers are reassessing their coverage strategies in response to the heightened risk of civil commotion, war and cyber threats, according to experts.
Executive Summary
In the face of ongoing global unrest and a historical election year, with elections being held in more than 50 countries across the globe, insurers discuss how the industry is rethinking coverage in risk areas such as strikes, riots and civil commotion, war, and cyber. Experts examine how geopolitical turmoil and conflict is keeping insurers on their toes and where these coverage areas might be headed as a result.“For example, is it still appropriate to offer unnamed contingent business interruption coverage under a war policy?” said Tim Strong, head of crisis management at Aspen Insurance, referring to CBI that provides coverage if a third party that isn’t named in the policy has a loss impacting the insured’s business activities or supply chain.
“What happens if the insured has a supply chain that includes semiconductors made in Taiwan or Israel?” he said. “Recent geopolitical events have prompted underwriters to reconsider some of the expansions of coverage that were a product of the soft market years.”
